Legal Question in Bankruptcy in California
I live in CA. I have a 10 yr HELOC @ current balance of 60K which was taken out for bill consolidation after the purchase. It was not used for purchase monies. My house is probably valued at about 105K and I owe $105K on the 1st mortgage. I was thinking of filing Chapter 13 BK on delinquent debts and HELOC. If I am not completely underwater on 1st mortgage and really have no equity in home, would I be able to get rid of HELOC in Chapter 13 BK? Can they modify the terms of the HELOC in BK? I want to keep my home.
2 Answers from Attorneys
San Diego Bankruptcy Attorneys You do need to be completely underwater, given consideration to the appraiser that you use. It may not be contested.
In my experience, the house will need to be less than the value of the 1st mortgage to strip off the HELOC. Chapter 13 bankruptcy is the avenue you want to take.
I recommend you contact an experienced bankruptcy attorney in your area.