Do I have to re-finance the balance because the note matured? 7 Answers as of September 18, 2017

I have had HELOC discharged in Chapter 7. However, I continued to pay the HELOC in good faith after the Chapter 7. In February, the bank put it back on my credit report which I found out was because the HELOC had matured now the lender wants me to file a new HELOC for the balance. I have no problem paying the HELOC back. Do I have any advantages in this scenario?

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Your personal obligation to pay it was discharged, however the lien remains on the property. You have no advantages here if you want to keep the property.
Answer Applies to: California
Replied: 9/18/2017
Ronald K. Nims LLC | Ronald K. Nims
If you refinance the HELOC the lender won't foreclose on the house to get its money back.
Answer Applies to: Ohio
Replied: 9/15/2017
Stephens Gourley & Bywater | David A. Stephens
You have to refinance if you want to keep the home. Your personal liability was discharged by the chapter 7, but it did not release the HELOC's security interest in the property. If you do not refinance, they can foreclose.
Answer Applies to: Nevada
Replied: 9/13/2017
GARCIA & GONZALES, P.C. | Richard N. Gonzales
My suggestion is you pay a lawyer for one hour of their time. There are pros and cons to these things. Now is not the time to skimp.
Answer Applies to: Colorado
Replied: 9/12/2017
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
Much more information is needed to give you professionally responsible advice. But if all you are doing is signing some new papers that permit you credit and require you to make the same payments, it seems not to be harmful.
Answer Applies to: Wisconsin
Replied: 9/12/2017
    OlsenDaines | Rex Daines
    You need to see a good attorney. It sounds like they violated the fair credit reporting act by putting something on your credit.
    Answer Applies to: Oregon
    Replied: 9/12/2017
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Whether you have any room to get a favorable settlement of this HELOC will depend on whether there is equity in your property that secures the HELOC. For example, if the property is worth $100K, the first mortgage is $90K, then the secured value of the HELOC is only $10K. I suspect under this scenario, the HELOC could be settled for cash around the $11K - $12K amount.
    Answer Applies to: Nevada
    Replied: 9/12/2017
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