Unsecured HELOC

[Bob Walker]

Hi everyone!

Well it looks like I have won my battle with our Trustee trying to get more value from our house. The Trustee asked a realtor to come in and estimate the value of our home, long story short, the value was actually $24k less than what I estimated on my forms!

So now the problem is we have a value of our home, $350,000, but we owe $345,000. During our first submission, I took off 10% of the appraised amount to come up with the Fair Market Value and that amount was the unsecured remainder from the 2nd Mortgage.

Does this mean now that our equity un-secured is now only $5,000 or can I take 10% off of the $350k and have that be the unsecured amount?

Thanks

[HHM]

Are you keeping the home or letting it go in the Bankruptcy?

Also, I am not clear on what you are asking? In any event..

If you are keeping the home, then you must continue to pay the HELOC and that loan maintains its status as a secured debt.

If you let the home go in BK, then any negative equity get discharged in the BK.