I have a line of credit with a local bank that is secured by a life insurance policy with a cash value of 3300. The credit line is for 30,000. if they file a secured claim will i be required to pay back the entire 30k or just the cash value of the life insurance policy?
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How much you may have to pay back depends on how much you have borrowed against the line of credit. How much is that? It also depends on the specific language in the original loan agreement. Do you still have that agreement?
And just curious....how did you get a bank to agree to a $30K line of credit with only $3300 to back it up?Last edited by lrprn; 08-15-2008, 09:43 PM.I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.
06/01/06 - Filed Ch 13
06/28/06 - 341 Meeting
07/18/06 - Confirmation Hearing - not confirmed, 3 objections
10/05/06 - Hearing to resolve 2 trustee objections
01/24/07 - Judge dismisses mortgage company objection
09/27/07 - Confirmed at last!
06/10/11 - Trustee confirms all payments made
08/10/11 - DISCHARGED !
10/02/11 - CASE CLOSED
Countdown: 60 months paid, 0 months to go -
i think there was about 27k used on the credit line. It was my understanding that they have to obtain in a 13 what they would get in a 7. If i had filed chapter 7 they would only receive the cash value of the policy correct?
i am on a composition case paying back 28%. They are set to receive 8700 under my current Chapter 13 plan.
To answer your other question i was practicing real estate at the time and they were hopping to get new accounts on their books. it was also a new bank.Comment
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