Hello, and thank you for contacting Just Answer. My name isXXXXX am a bankruptcy law professional, and I look forward to answering your questions this evening.
Home equity loans in a chapter 7 bankruptcy are a tough issue for many debtors to deal with because while the underlying debt still gets stripped away, the lien on the property does not, that is not discharged in bankruptcy. Now, your question as to whether or not the bank will work with you is a good question, and the honest answer is possibly. They certainly do not want to try and force a sale of the property because of the primary mortgage which would likely get in their way of collecting anything on the property. Consequently, they may be more willing to try and work something out with you so that they continue to get paid. Using the bankruptcy and reaffirmation of the first mortgage as leverage may be enough to get the bank to work with you.
I would, however, strongly recommend in such a situation working with a bankruptcy attorney as they may have better luck negotiating with the lender (or at least can accurately communicate why it is in their best interest to work with you).
For a referral to an attorney in Rhode Island, the Rhode Island State Bar Association provides a referral service at:
So, in short, yes, a lender may be willing to work with you to avoid losing the regular payments they are currently getting from you. There is no guarantee, a lender certainly is not required to do so, but some will see doing so as in their best interests (which it really is). Again, working with a knowledgeable bankruptcy attorney will be helpful to your cause.
I hope this helps, and let me know if you need any additional information or need clarification of anything I have said. Otherwise, please remember to RATE my answer so that I can receive credit for my work.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).