Home Equity Line Advance Question

[Dollar Bill]

Are Home Equity Lines treated the same as credit cards when it comes to advances/charges.

I need to take a $2k advance on my HELOC. If i do so and file in 30 days or so. Will it be scrutinized? I assume not because it is a secured line on a rental property that I plan to reaffirm. What do you think?

[HHM]

What would the money be used for?

[Dollar Bill]

My primary home repairs. The stairs are damaged, and there is some concrete damage outside. The slab may cause damage to the neighbors retaining wall.

[HHM]

I don't think it will be problem, but many banks have frozen HELOC's, so you may need to make sure you can even make a withdraw.

But your interpretation is correct, so long as you keep making payments, the HELOC is a secured debt and therefore should not be an issue. If you were to surrender the home, or otherwise let it go to foreclosure during or shortly after your BK, you could "possibly" have an objection, but $2,000 is probably not worth the bank's time and effort.

[Dollar Bill]

Thanks HHM.