Legal Question in Bankruptcy in New York

Re: Bankruptcy Discharge

A creditor who holds a secured home equity line of credit for a bankrupted debtor can generally collect the security interest if the debtor fails to pay the loan as originally agreed, even after the bankruptcy petition is filed and discharged. That means that a home-equity line lender can generally foreclose on the property that secures the loan when the loan goes unpaid or is discharged in bankruptcy.

If you had an attorney representing you in your bankruptcy action, give the letter to him or her and follow his or her advice as to what to do in regards to this loan.

If you did NOT have an attorney, it's time to bite the bullet and hire one. I handle these sorts of matters on occasion, but there are other attorneys out there who do this sort of thing more than I do. Check with the NY State Bar Association or with your county's bar association for a referral.

Good luck.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

Re: Bankruptcy Discharge

First of all, if you hired an attorney to represent you in connection with the bankruptcy you should really address your question to him or her.

Without getting into the specifics of your situation, a discharge of debt in a personal bankruptcy filing only extinguishes the debtor's personally liability on the debt, it does not terminate liens on property of the debtor. That would require a separate adversary proceeding in the bankruptcy case.

Check out the Frequently Asked Questiosn (FAQs) on our website at www.starrandstarr.com/faqs.htm for additional information about bankruptcy.

The foregoing is intended as general information of interest to the readers of these postings, and is not intended as specific legal advice regarding your situation. Facts and circumstances not decribed in your posting may affect your rights. You should consult with an attorney.

Best regards,