Legal Question in Bankruptcy in California

Did you consult with an attorney before filing bankruptcy? You should have been counseled to look at Chapter 13 as an option, as it may have allowed you to strip, or remove the HELOC mortgage from your home. A second important point is that unless you formally reaffirmed the HELOC mortgage debt, your 'personal' liability for that debt was extinguished by the Chapter 7 bankruptcy discharge. The lien still exists against your home, but you can no longer be personally sued for the HELOC mortgage, even if the first mortgage forecloses and takes the home. This presents a possible opportunity to negotiate settlement of the HELOC loan.

I strongly suggest that you consult with a local bankruptcy and real estate attorney to review in detail what your options may be. This forum, while intended to help educate people, is not able to provide you with specific legal advice as to how you should proceed, particularly as yours is a relatively complex situation which requires analysis of the specific facts of your case.

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