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I live in California. Ten years ago I filed chapter 13. One of my debts was a home equity line of credit. I didn’t discharge this debt and I also didn’t reaffirm it. When I make the monthly payment I have to call the lender and they read me the bankruptcy statement that they aren’t attempting to collect a debt. They ask me if I want to make a voluntary payment. This interest only loan matures in five years. I believe the balance will be due at that time. My question is “what action can the lender take when the loan matures?
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If your plan did not propose to treat the debt as unsecured because there was equity to secure it, your are correct that it was not discharged. If it was not discharged then you remain liable on this loan the same as if you never filed bankruptcy. As such, it is not necessary for the lender to give you the bankruptcy statement. When the loan comes due they have the right to foreclose on the property, so you may need to refinance the loans or sell the property to avoid foreclosure.
Answered on Feb 01st, 2021 at 8:57 AM