QUESTION
Do I need to continue paying my home equity if it was included in my bankruptcy?
Asked on Mar 27th, 2012 on Bankruptcy - Colorado
More details to this question:
My home equity was included in my bankruptcy, do I need to continue paying on it? How does that work in the future if I sell, etc.?
8 ANSWERS
Home equity loans are not discharged in a Chapter 7 unless you rejected the real estate. If you still have the home, and wish to keep it or sell it, you will need to pay on the second mortgage or get their permission to sell the property.
Answered on Mar 30th, 2012 at 9:55 AM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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The home equity bank can still foreclose if the payment is not made. Even though you filed bankruptcy, that loan is still attached to the house unless you did a lien strip in a chapter 13.
Answered on Mar 29th, 2012 at 11:18 AM
Bankruptcy Chapter 7 Attorney serving San Diego, CA
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Law Office of Asaph Abrams
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I assume you had filed a chapter 7 bankruptcy and received a discharge. The home equity debt will have been discharged-meaning personal liability is eliminated; however the chapter 7 discharge will not have eliminated the security interest: in other words, the lien remains and needs to be paid off in order for title to be had. Failure to pay and resulting default would permit the mortgagee (the lender) to foreclose.
Answered on Mar 28th, 2012 at 4:06 PM
Chapter 7 Bankruptcy Attorney serving Clinton, MS
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Timothy Kevin Byrne Attorney at Law
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Talk with your attorney who drafted the chapter 13 plan that you fixed your signature upon. It will clearly state how and where the home equity debt is to be paid. I provide all my clients with a copy and explanation of their chapter 13 plan
Answered on Mar 28th, 2012 at 3:28 PM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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If you filed a chapter 7 and did not "strip" the second mortgage, you have eliminated the debt by obtaining a chapter 7 discharge, but the equity loan retains its lien. If you do not pay the bank can foreclose, though it might not bother because it would have to take over the first mortgage. You cannot sell without the consent of the equity loan because the company retains the lien.
Answered on Mar 28th, 2012 at 3:27 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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If you have a lender or lenders on your home you must keep them current in order to continue owning your house. Otherwise, they will foreclose.
Answered on Mar 28th, 2012 at 12:45 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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No. To sell you must still pay the mortgage liens.
Answered on Mar 28th, 2012 at 12:24 PM
Daniel James Wilson
If you do not make your house payments lender will foreclose. You don't get a free house.
Answered on Mar 28th, 2012 at 12:07 PM