I have a first and second mortgage on my home, the first is paid on time, the second was a commercial line of credit but secured against my home which is my primary residence and has homestead exemption on it. I live in Florida. The credit line is a second mortgage that is in default and the bank is trying to foreclose. I cannot modify since it’s considered a commercial loan and they will not modify. I have tried settling with the credit line but they are reluctant. The company in which the credit line was done under has been closed now for 2 years. Will a chapter 13 bankruptcy unsecure the line of credit from the home?
No, it will not incesure it. All that will happen is the courts will assign another repayment plan to you. You will still have to repay it in full is you wish to keep the house.
Bankruptcy chapter 13 and homesteaded property?
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No, it will not incesure it. All that will happen is the courts will assign another repayment plan to you. You will still have to repay it in full is you wish to keep the house.
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A chapter 13 would place you in a position of reorganizing your finances. Your court appointed trustee would take a look at your current income, your current debts and between you, your creditors come come up with a solution where you would be able to make the payments each month without losing any of your current assets.
If you are thinking that this debt would go away, I am sure it would be required to be paid off with a payment plan prepared by your trustee.
Was your line of credit purchased by another financial institution? as you indicated the company with the line of credit has been closed for 2 years.
For all legal matters, you should consult with your attorney.
I hope this has been of some benefit to you, good luck.
"FIGHT ON"
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No, it will not do so. Understand that, with mortgages and HELOC’s, the actual property is secured by the lender as collateral. That YOU file bankruptcy is irrelevant, since the collateral remains listed with the lender. A bankruptcy will DELAY a foreclosure, but only until the bankruptcy is dishcarged. Then the lender can and will proceed with the foreclosure.
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