A debtor can discharge the home equity loan in Chapter 7 bankruptcy but they cannot discharge it AND keep their home. However, if a debtor would like to keep their home, they may be able to file Chapter 13 bankruptcy and repay both their HELOC and their mortgage over a 3 to 5 year period.

Discharging Mortgage Debt All debts listed on a filer’s bankruptcy petition are subject to discharge. For example, you might have filed for Chapter 7 bankruptcy protection and still lost your.

When Is First Mortgage Payment Due After Closing When the closing occurs near the end of the month, the first mortgage payment will be due one full month after the last day of the month the mortgage closed. For example, if a borrower closes june 14.

You can’t be sued after Chapter 7 for your second mortgage, but you still owe if you want to own your home outright.. What is a home equity loan?. After bankruptcy, do I owe on 2nd mortgage?