Legal Question in Bankruptcy in Maryland

Re: Home equity loans

Only if you are surrendering your home as part of the bankruptcy. You might consider a chapter 13 which would allow you to keep your home.

Raymond Carignan

(410 ) 975 9401

Re: Home equity loans

Home equity loans, like all debt, are "included" in the bankruptcy. In a Chapter 7, personal liability on the loan is discharged (so the lender cannot sue you), but the lender can still foreclose (but cannot collect any deficiency). In a Chapter 13, the arrearage can be cured, and if it's not on your principal residence the lien can be stripped down to the equity in the property. See an experienced bankruptcy lawyer for details.