Legal Question in Bankruptcy in Kentucky
can a promissory note for loan on my home be expunged in a bankruptcy
Asked on 1/22/10, 3:57 pm
1 Answer from Attorneys
Gregory Napier
Troutman & Napier, PLLC
A promissory note is the loan. The loan itself can be discharged along with every other loan. However, the issue is that the promissory note is almost certainly accompanied by a mortgage. This makes the loan a "secured" loan. If this is the primary mortgaged loan, then you can only get rid of the loan by losing the house. If it is a second mortgage - like an equity line of credit, you can only get rid of it while keeping the house if there is actually no equity left to secure the loan. It gets a little complicated from there.
Answered on 1/27/10, 6:37 pm
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