HELOC Interest question

[kcj]

We have/had a home equity line of credit that we did not reaffirm during our chapter 7. Our payments have been current before, during, and after. They have since resumed sending us statements based on my written request, but the debt is still discharged.

My question is, they are charging us interest still. Can they do that? If the debt was discharged, how can they charge interest? It's not a huge amount, but I am curious as to what the rules are on that.

[anonymuse]

Do you have a lawyer? Best to ask him or her for advice.

[SinkingFast]

Just a guess, but I imagine the Lender is treating this the same way auto loans are treated. People who don't reaffirm continue to send the same payment, which includes interest. Since you have continued to remain current, the Lender is working with the original terms of the agreement on the Loan. Which includes interest.

Like Anon suggested, contact your attny about this. If you have to continue paying as if the BK didn't happen, be sure you get an interest statement from them at the end of the year for tax purposes.

[kcj]

We do have an attorney, but he is semi-retired now. Answers come much quicker here

That makes sense, that they continue to act under the original terms of the loan. (of course I can also work it out in my head that it makes sense for them not to be able to charge interest as the debt no longer exists, because that works out better for me)

I will definitely make myself a note to be sure we get a statement from them. Thanks for the tip.

[bejam]

HELOC question

So am I reading this right, you were able to get the HELOC discharged and still keep the house? I have that exact question, can one get the HELOC discharged and still keep the 1st mortgage and the house? How did it work out for you?

bejam