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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I had a chapter 7 discharged in 2009. I did not reaffirm 1st

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I had a chapter 7 discharged in 2009. I did not reaffirm 1st mortgage or HELOC. Last year I refinanced the 1st at a better rate. I would like to re-do the HELOC (or keep it the same) and take out some cash. The credit line has been frozen since the BK. Do I have any leverage? There is equity in the house, and I've never had a late payment.

WALLSTREETESQ :

It may be possible since your credit score should have increased, however if you have not made any payments on the HELOC since it was discharged, they would have closed the account and in most cases would only open it if you are current on payments, and agree to a new loan

WALLSTREETESQ :

once the Heloc was discharged they cannot sue you for a balance, so if you want a new line of credit, the best option would be to use a new lender to pay off the HELOC, and give you a line, as they would have a non discharged loan against you

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