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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I filed Chapter 7 in 9/2009 against a large corporate bank that was taken over by another

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I filed Chapter 7 in 9/2009 against a big bank that was taken over by another during the market collapse. They held the 2nd/HELOC on my home. It is now 2 years after Bankruptcy and my BR lawyer tells me they can make a "demand for payment" and/or foreclose up to 7 years after BR?? In less then a year I will inherit a decent sum of money which would allow me to refinance down to an affordable 1st mortgage, or possibly pay off the 1st mortgage. If I pay off or pay down the 1st can the 2nd start a foreclosure? Can they find out about my inheritance and try to take it? Can they check my credit reports without my permission? I can't get a straight answer out of estate planners, real estate attorneys, lawyers on this one. Help!!!
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 5 years ago.
Welcome to JustAnswer,

So sorry to hear of this dilemma. If my answer is not clear to you, please ask me for clarification by using the reply button.

The chapter 7 bankruptcy would have discharged your personal liability on the 2nd/HELOC but not the lien on the property. This means if the property were to be foreclosed, the lender could sell the property to satisfy the debt but could not obtain a judgment against you for the unsatisfied portion of the debt. However it also means that you cannot sell the property without paying the 2nd/HELOC in full

It does not appear that your inheritance can be taken nor does it appear that you will your credit reports may be pulled without your permission. You are only required to report any inheritance that you become entitled to receive if that entitlement arises within 180 days of filing bankruptcy.

Please use the REPLY button if you have any questions concerning my answer. Otherwise please click ACCEPT so that I am paid by the site for answering.
Customer: replied 5 years ago.
Your statement, "It does not appear that your inheritance can be taken nor does it appear that you will your credit reports may be pulled without your permission."

Not sure the use of the word "appear"? Sounds like there is some uncertainty here. That is the issue I keep running up against and cannot get a concrete answer on? I have heard of a "hard pull" (doing it without permission) on credit reports. Can you address the this?
Thank you.
Expert:  Ellen replied 5 years ago.
Due to the fact that I do not represent you and the nature of this forum, I use the word "appear". Based upon only the facts in your post, there is no uncertainty. Your credit report may not be pulled unless you apply for credit or give your permission
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