Home Equity Line Of Credit (HELOC)

[TryingToDigOut]

When we bought our home, we went with 2 mortgages to avoid PMI. The second mortgage was a home equity loan. Since then, I refinanced the home equity into a $50K HELOC. There was $25K available on the HELOC, which I used to pay off some old credit card debt.

If we file, I REALLY want to keep our home in order to keep living consistent for our 3 small children.

This is the part that really blows.

If we file and continue to pay on our main mortgage and HELOC in order to keep our home, that $25K I used on the HELOC to pay credit cards off won't be included in the BK. Hind sight is 20/20 i so many ways.

[LostinMi]

That's right. That $25k is now secured debt and will not be discharged unless you plan to give up the house.

[DeadBroke]

Yea that is the problem with second mortgages, you never really think about that until its too late.