Can I get my equity loan discharged after bankruptcy? 9 Answers as of May 19, 2011

I havent been discharged from bankruptcy. I still have 3 years to go. My house is now underwater. Can I get my equity loan discharged as a secured loan?

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Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
In Chapter 13 bankruptcy, one can avoid an equity loan only if at the time of filing the petition the home is underwater in value to the first mortgage.
Answer Applies to: Indiana
Replied: 5/19/2011
Law Office of Harry L Styron
Law Office of Harry L Styron | Harry L Styron
If I understand you correctly, the answer is no. I assume that you have a secured loan on your residence that is now worth less than the loan. If you have a 1st and a 2nd then under certain circumstances you can get rid of the 2nd, but not the 1st.
Answer Applies to: California
Replied: 5/18/2011
The Northwest Debt Relief Law Firm
The Northwest Debt Relief Law Firm | Thomas A McAvity
You can likely file a motion to avoid the second mortgage lien in your chapter 13 if the home is worth less than the amount owed on your first mortgage. If the second is partially secured (the home is worth more than the amount owed on your first mortgage), it cannot be avoided in bankruptcy. If you want to let go of the house. The house can likely still be surrendered in your Chapter 13 Bankruptcy. I would contact your Chapter 13 Bankruptcy Attorney as soon as possible.
Answer Applies to: Oregon
Replied: 5/18/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Only if at the time you filed the first mortgage was more that what the house was worth. You will need an appraisal to establish the value. A competent appraiser can do this for you.
Answer Applies to: California
Replied: 5/18/2011
Law Office of David P. Farrell
Law Office of David P. Farrell | David Farrell
No. Once your chapter 13 plan is confirmed by the court, you cannot go back and change the treatment of claims under the plan. The plan is binding on both you and your creditors. In order to avoid the 2nd mortgage, you would have to dismiss the case and refile.
Answer Applies to: California
Replied: 5/18/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    Sounds like you are in a Chapter 13. You can use a Chapter 13 to remove the equity loan from the house if you owe on the first more than what the house is worth. Don't know if you are too far into your case to do that now.
    Answer Applies to: Virginia
    Replied: 5/18/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    You might be able to do this but you will have to file a chapter 13.
    Answer Applies to: California
    Replied: 5/17/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    An equity loan secured by real property retains its security interest. Although a discharge means personal liability no longer exists,the security interest is not removed except in a lien strip. This is a complicated issue and you should seek the advice of an attorney who is a certified specialist in bankruptcy law. Consult the State Bar for a listing of those attorneys in your area.
    Answer Applies to: California
    Replied: 5/17/2011
    Law Offices of Alexzander C. J. Adams, P.C.
    Law Offices of Alexzander C. J. Adams, P.C. | Alexzander Adams
    Possibly. The is a way to strip wholly unsecured liens in chapter 13 cases. It will depend on the value of your home, the value of the first mortgage, and the value of the second mortgage. You should contact your bankruptcy attorney or, if you did not use an attorney, contact a qualified bankruptcy attorney to go over your options.
    Answer Applies to: Oregon
    Replied: 5/17/2011
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