Legal Question in Bankruptcy in California

Since the balance of the first loan is less than the value of the property you cannot have the second deed of trust (equity line) voided. In any case, that can never be done in a Chpater 7 case. Sorry but you will have to live with the second loan if you want to keep the property unless the value of your home goes below $293,000 and then if it does you will have to file a Chapter 13. In some areas the court will not void a lien in a Chapter 13 unless you can get a discharge and you would not be eligible for a discharge in a Chapter 13 if you file within 4 years of the date you filed the Chapter 7 case. You will not have to pay your equity line if you lose the house in foreclosure since your personal liability for the equity line has been discharged. However, the lien (second deed of trust for the equity line) will remain against the house so as long as you keep the property. The equity line balance will remain and grow if you do not pay and the bank can foreclose if you do not pay it since your house can be sold for about $400,000 and that will satisfy all of the first loan and probably all of the second (equity line). In other words, it sounds like the equity line is fully secured by equity in your home above the balance of the first loan. You need to consult with your own lawyer about all this since what I am giving you is very general information and certainly not advice.