If you file bankruptcy on a home equity loan can you keep that home which has the loan against it?

Answer 1

You don't file BK on a thing...a this or that...you don't chose. YOU file bankruptcy. BK includes (with some limited exceptions), ALL of your assets and ALL of your debts/liabilites. One is used to satisfy the other. All are disclosed and some are then catagorized as exempt... It is possible to have a BK and keep a property (or any specific asset), but it depends on many factors...and in this case the 1st mortgage must be involved too.

Answer 2

Probably not...for many reasons. First, in todays financial world, even well qualified people, with reasonable equity in their homes, and who have paid back heir other creditors on time and have no real chance of liens or judgments or losing assets have a tough time getting loans. You are in BK. EVERYTHING you own, and EVERYTHING you owe is included. (If you didn't include/report things, it will likely turn up, and can be considered fraud or at least contempt and certainly will lilley have your case dropped. Your assets and debts are classified, with some things perhaps being classed as exempt, and what you own is liquadated to pay what you owe...and the rest of what you owe discharged. The house will be sold to provide funds for those you owe. The equity ISN'T yours....it is actually those you owe and haven't paid. While some portion of the house may be "homesteaded" or exempt...well, that is exactly the portion you can't use as collateral on a loan, because the lender can't get to it. Then of course there is the other aspect....your in BK, you haven't handled credit well...it will cost you a lot if you can find it...and much more than the people who actually manage to pay back what they borrow would consider. You cannot borrow your way out of debt. Whatever the change, making the ones that allow you live within your means is what is called for...live the life you can afford. You can't afford to live on borrowed money. Proved that.

Answer 3

A basic, rough primer: BK is always done under Federal Laws, in a Federal Bankrutpcy Court. Basically State makes little difference. (Yes the BK Courts operating in certain areas have certain special exemptions and such, minor in the overall, generally intended to make things adhere to the local laws and customs better). In a personal bankruptcy, YOU go bankrupt. Not a debt, not a loan...not a car...not a this or that. ALL of your assets, of all types, MUST be disclosed and reported in BK, and ALL of your liabilities/debts must be too. No exceptions, no picking and choosing. They are all, always involved in some way.The court will then order each of them in priorities according to the laws. Some things may be exempt from use or discharge (like your personal furniture and retirement accounts are exempt and child support cannot be discharged) - and the rest may be used. With one to pay the other. (All possible creditors are contacted and asked to say what they are owed....you may be required to even take advertisments out to make sure everyone is notified). Any deal you've done for several years is open to scruitiny and review. The court can reverse them, take them out of the BK, or even have them prosecuted as trying to defraud your creditors. (So, no you can't sell your boat to your brother and then declare BK). Debts secured by an asset (say a car) have first call or right to the money received from that asset. If it isn't enough to pay the debt, the remainder of that debt becomes a general or unsecured claim against the BK., and has a chance to payment on that level too (albeit a lower priority than those who have yet to receive anything). The end/remaining amount that can't be satisfied is generally discharged by the court...meaning you no longer owe it. You get a fresh basically debt free start....many of those you owe don't get paid what they had expected and relied on, if anything. There are many other considerations too. BK will severly hurt your ability to get credit for a very long time for example. It is on your credit report for at least 10 years...and employers refer to that too, as do landlords and more. Many do not trust people with bankruptcies in their past, especially in the last few years. Many more things. Not disclosing all items is frequently tried and easily discovered, in which case - as you are swearing under oath to the court you included all info - your case is dismissed, and regularly, fraud charges are pursued. (Courts don't take to being lied to well). The courts, Judges, laws, bankers, all those zillions of attornies, etc, have been through this thousands of times for many, many years. The processes are fairly well worked through and prepared for tricks and games. It is unlikely you would discover one that hasn't been tried a zillion times before! The Cos that claim they can change your record, or make magic happen (either before or after BK), are scams, and getting caught doing something unsavory (intentional or not), other than screwing up your bankruptcy filing, is frequently considered and persued criminally. (Think your financial troubles are bad, try adding in criminal ones). The legal process and system is demanding even for those experienced with it. Many of your creditors will have an attorney to assure they get as much as possible, even groups of lawyers, who specialize only in bankruptcy. Simply you should/better/need to have one too

Answer 4

My house is mortgaged at a different bank than my 2 equity loans.. I'm having a really hard time making the payments on the equity loans. My question is : Can I file bankruptcy on the equity loans and still keep my house through the other bank?

No, When You go bankrupt All of your assets are made liquid (sold) and that is then distributed among all of your creditors. You Will then remain bankrupt for a period of time or until the debts are all paid. The best thing for you to do is have a talk with a financial planner.

Answer 5

When you file for bankruptcy, you generally have less equity than you owe. You can have a million dollars and file because you owe two million.

Answer 6

It won't effect it. Basically it is a 2d & will have to be satisfied when you sell or refi & will only gain interest until it is.