Heloc

[jdean1968]

What is the name of your state?What is the name of your state? Iowa

A question regarding home equity lines of credit...

I currently have a $28k HELOC, which I understand is not dischargeable under a chapter 13.

My question is... if I were able to move that $28k onto various credit cards (they are all in good standing) through balance transfers and then waited for 90-120 days to file, would that cause any problems?

Just checking out my options!

Any help would be appreciated. Thanks!

 

[bigun]

My question is... if I were able to move that $28k onto various credit cards (they are all in good standing) through balance transfers and then waited for 90-120 days to file, would that cause any problems?


Oh yeah it'd cause problems. Expect your creditors to strongly object to that kind of activity followed by a bk filing.

 

[AttorneyOney]

The home equity line of credit is probably secured by a second mortgage. It is sometimes possible to reduce or eliminate a second-mortgage lien in chapter 13, so you should consult a bankruptcy attorney reasonably soon before making bad choices. The new law, which will go into effect on October 17, will affect the ability to strip down second mortgages, so time is somewhat important.