Legal Question in Bankruptcy in California

Poof! There it goes into thin air, especially if you are underwater on the 1st. At worst you will be able to have the court reduce the principal and interest payments. Call a bankruptcy lawyer right away.

By filing a Chapter 13 if you otherwise qualify you can ask the court to value your property and void the second or junior deed of trust securing the home equity line of credit or HELOC. The main requirement is that the value of the property, which must be your home, is less than the balance owed on the first or senior deed of trust and any other senior liens such as property taxes owed. I would not characterize it as "Poof" since you cannot complete the Chapter 13 plan in less than 3 years. You need to get all the balances owed, look up the value of your home in Zillow.com, talk to real estate agents about the value of your home and see a local bankruptcy attorney or two if the value is less than the owed owed on the first mortgage. Good luck...