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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 12357
Experience:  JD, MBA
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can you file brankrupcy on a equity line of credit thro a bank

Resolved Question:

can you file brankrupcy on a equity line of credit thro a bank and still keep your house
Submitted: 8 years ago.
Category: Bankruptcy Law
Customer: replied 8 years ago.

Huntsville, Alabama

Already Tried:
have tried to work with them on payments, can't afford what they want
Expert:  TJ, Esq. replied 8 years ago.

Hello and thank you for allowing me the opportunity to assist you.

Question: “can you file brankrupcy on a equity line of credit thro a bank and still keep your house”

Answer: Generally speaking, if the equity line of credit isn’t paid, then the lender can foreclose on the house regardless of whether or not you file for bankruptcy protection. The reason is that bankruptcy only discharges unsecured debt. On the other hand, the general rule is that secured creditors are always protected up to the value of the collateral.

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DISCLAIMER: Please understand that the complexities of most legal problems cannot be adequately addressed in this setting, and that I am only licensed to practice law in the state of Maryland. Accordingly, you acknowledge (1) that we have not formed an attorney-client relationship, and (2) that my post is general information only and not specific legal advice.

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