Can my arrears on my home equity line of credit be discharged w/ a chapter 7 banckruptcy in Massachusetts?
I want to keep my house. Can my arrears be discharged or do I have to pay them full in order to avoid losing the house? Can the whole line be discharged with out losing my house?
2 attorney answers
I am licensed in your state. The arrears cannot be discharged and you have to make all your regular payments to avoid losing the house, including a quick catch-up on any missed payments to avoid large foreclosure fees and costs which, once started, will also have to be paid to avoid losing your house. If you simply cannot do that, you need to consider a Chapter 13 bankruptcy solely to catch up on your mortgage payments before you lose your home to foreclosure.
Your lender is simply wrong about not being able to request payments. There's a standing order which allows this while the case is open, and there's a provision in the Bankruptcy Code which allows this after the case is closed.
If you're asking these questions here because you don't have an attorney for your Chapter 7 filing, you should be very, very afraid that there are other questions and issues that you don't even know to ask about. If you have an attorney, you need to explore why you felt compelled to ask the questions here anyway.
I am not licensed in your state but can offer you some general information.
You have to keep paying, and catch up the missed payment, if you want to keep your home.
You will receive a discharge of your personal obligation to repay the equity line. However that will not remove the lien from the registry of deeds, thus the bank could still foreclose, and they will if you are not current.
You should consult a local attorney who will be able to advice you on your case and state’s laws.