Filing Bankruptcy Myself In California
Can I file chapter 7 bankruptcy for my HELOC?
I’m in California, I bought the house in July 2005, REFINANCED in July 2006 then stop paying in February 2007 because my mom passed away and I couldn’t afford the payment, insurance and taxes all by myself. My house is now foreclosed. The bank took possession on October 2006. Countrywide continues to send me statement on the HELOC. Does this means that I still have to pay for the HELOC?? I didn’t even take any money from it. It was used to pay for the rest of my original loan when I refinanced. Can I file bankruptcy particulary chapter 7 for the HELOC??
NO! My mother is not on the mortgage. She helped me with it because I bought it for her… she couldn’t qualify.
I meant to say “NO! My mother WAS not on the mortgage. She helped me with it because I bought it for her… she didn’t qualify.”
The HELOC is like a credit card but secured by your home. It is not very different from a loan in the end because it is secured. Even if it is foreclosed and the collateral is no longer securing the loan, the loan exists. Just as you will owe money after the foreclosure due to the cost of foreclosure and the difference between the selling price and the funds owed, you will also owe the HELOC balance. If you want to erase the debt, you will need to file bankruptcy, which will effectively write off all your debts unless you reaffirm a debt (meaning you tell the courts you want to keep that debt – such as your car loan for example.)
How Do I File For Bankruptcy
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