QUESTION
Do I have to re-finance the balance because the note matured?
Asked on Jun 24th, 2017 on Bankruptcy - Wisconsin
More details to this question:
I have had HELOC discharged in Chapter 7. However, I continued to pay the HELOC in good faith after the Chapter 7. In February, the bank put it back on my credit report which I found out was because the HELOC had matured now the lender wants me to file a new HELOC for the balance. I have no problem paying the HELOC back. Do I have any advantages in this scenario?
5 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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If you refinance the HELOC the lender won't foreclose on the house to get its money back.
Answered on Sep 15th, 2017 at 7:51 AM
Whether you have any room to get a favorable settlement of this HELOC will depend on whether there is equity in your property that secures the HELOC. For example, if the property is worth $100K, the first mortgage is $90K, then the secured value of the HELOC is only $10K. I suspect under this scenario, the HELOC could be settled for cash around the $11K - $12K amount.
Answered on Sep 12th, 2017 at 1:26 PM
1 Award
You need to see a good attorney. It sounds like they violated the fair credit reporting act by putting something on your credit.
Answered on Sep 12th, 2017 at 1:26 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Much more information is needed to give you professionally responsible advice. But if all you are doing is signing some new papers that permit you credit and require you to make the same payments, it seems not to be harmful.
Answered on Sep 12th, 2017 at 1:25 PM
My suggestion is you pay a lawyer for one hour of their time. There are pros and cons to these things. Now is not the time to skimp.
Answered on Sep 12th, 2017 at 1:25 PM