Legal Question in Bankruptcy in California

You must include all debts in your petition, schedules and statement of affairs, including the home equity line. What happens to that home equity line depends upon a number of facts. First, what chapter of bankruptcy are you filing. In a chapter 7 bankruptcy, you must either continue to pay debt secured by your house after you file (and cure any default), or stop paying all mortgages on your home and surrender it, in which case the debt should be discharged. You cannot "strip" that home equity line from your home in chapter 7 and discharge it.

If, however, you file a chapter 13 bankruptcy, you MIGHT be able to strip that lien from the home. There are a lot of facts that need to be analyzed to determine if this is possible, so you really need to consult with an experienced, qualified attorney in your area. Good luck.

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