Legal Question in Bankruptcy in Minnesota

home equity vs credit card

I am wondering if in the event I need to file bankruptcy, would it be better to have 20,000 on credit cards than to have a 20,000 home equity loan, I thought I read where the home equity loan would still need to be paid if I file bankruptcy? Just wondering.


Asked on 9/14/07, 9:48 am

2 Answers from Attorneys
David Kelly-952-544-6356 Kelly Law Office

Re: home equity vs credit card

This question is SO typical of questions I have been receiving about home equity lines of credit. A HOME EQUITY LOAN IS A MORTGAGE. Fail to pay it and they foreclose. No bankruptcy can stop that.

There's an article on my blog on this subject. Follow the link from my site at http://www.mn-bankruptcy.com.

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Answered on 9/14/07, 5:37 pm
J. Chris Carpenter Harvey and Carpenter

Re: home equity vs credit card

Home equity loans would survive a bankruptcy as it is secured by your house.

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Answered on 9/14/07, 10:22 am


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