Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.
Are you trying to get rid of the equity line?
Unfortunately chapter 7 won't help you. It's secured by the property
You can file chapter 13 to treat it as an unsecured debt, and pay it possibly as low as 10%
Depending on assets, and income when calculating the chapter 13 repayment plan.
Unfortunately, there is no comparable provision under chapter 7 of the code.
Did you have any questions?
chapter 13 has provision to deal with negative equity property loans and credit cards debt.
If the 2nd mortgage is completely unsecured, it can be treated the same as a credit card
and the lien comes off the house upon completion of the case.
Equity loans are they considered to be 2nd mortages.
you still have a first mortgage?
and the balance on the first is more than the value of the home?
NO THE HOUSE WAS PAID OFF,but we took out an equity loan in 2007. the property values decreased in Detroit Mi drastically.
Oh I see
Unfortunately, you won't be able to strip it off then
if you don't want the home anymore, you can discharge the mortgage in chapter 7, but the lender could foreclose. In chapter 13 it needs to be a wholly unsecured loan to strip it off.
So, you won't be able to get much relief thru the bankruptcy code. perhaps try negotiating a loan modification with the lender based on the current value.
okay . THanks , but what good would a chapter 13 be or maybe a chapter 7 better in my life sitiuation.
well, chapter 7 can wipe out all other consumer debt if you don't have any assets and minimal income
if you have unexempt assets, and/or disposable income then the chapter 13 will be the way to go
Talk to a local bankruptcy attorney to review the best options for your
Great will do.
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