If I have to declare bankruptcy will that clear the home equity line of credit I still owe on?

UPDATED: Dec 14, 2011

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If I have to declare bankruptcy will that clear the home equity line of credit I still owe on?

Asked on December 14, 2011 under Bankruptcy Law, Florida


Greg Wiley / Law Office of Greg Wiley PLLC

Answered 10 years ago | Contributor

Generally speaking, the Home Equity Line of Credit (HELOC) attaches to the property like a mortgage.  You may have had a personal discharge of the debt but it likely still attaches to the property.

In some circumstances you can strip a second lien through a Chapter 13.  You will need to discuss this with your bankruptcy attorney.

Best of Luck

Greg Wiley


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