Legal Question in Real Estate Law in California
My home equity line was included in Chapter 7 Bankruptcy. I have kept paying on it for 5 years. Do I still owe this debt? I live in California and the balance is $146,000. The loan is with Bank of America.
Asked on 3/06/16, 10:58 am
1 Answer from Attorneys
You are in a tricky place in the law. The DEBT would have been discharged in the bankruptcy, but the MORTGAGE was not. Voluntary liens on real property are not discharged in bankruptcy. So while the lender is legally barred from collecting the debt directly, such as by a court case, levying your income, etc., there is nothing to stop them from foreclosing on the mortgage that secured the equity line, if you stop paying.
Answered on 3/08/16, 10:06 am
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