chapter 7 and heloc need help badly!

[dumbquestion]

so can i convert from a chapter 7 to a chapter 13 to get rid of the 2nd heloc all together?

[justbroke]

Stopping the payment on a 2nd mortgage in a Chapter 7 is very very common these days. While your attorney should have probably explained it to you until you understood, this is a common thing done... especially when you "ride-through" on the first mortgage.

In most cases, the 2nd mortgage holder will not foreclose because the house is just not worth it, but when you go to sell, or if the market improves significantly (10 years?), then you will probably get some trouble with the lienholder at that time.

[dumbquestion]

it figures. i listened to my lawyer who told me to file chapter 7. is there anything that i can do now?

[BobMango]

As long as the lien is in effect, the holder can pursue foreclosure. Assuming that the house value is less than the balance of the first it may be a while before they want to come after the house. The danger is that if you continue paying on the first and the house value increases, as some point the lien holder of the second will foreclose to get their money.

If you are filing a Chapter 13, stripping the second lien if possible.

[dumbquestion]

so what does that mean? after the discharge can the 2nd come back and foreclose. we were planning to try and keep our house but i don't know if that is an option or not?

[OhioFiler]

The debt will go away but not the lien.

[dumbquestion]

so i filed for bankruptcy a little while ago. we had our meeting with the trustee on 1-29-10. we have a heloc that my lawyer said "don't worry about it it will go away" since it is a 2nd and we are upside down in the house, but reading some more stuff it looks like that may not be true. i have tried to contact my lawyer but he is not responding can anyone tell me what i should do?