heloc discharge and settlement offer

[mililaniman]

i owe 25k on my heloc, i have offered us bank 7500, anybody out there in similiar situation and has us bank accepted a compromsie and for what amount on anyones heloc..

if unable to settle, can the heloc be discharged in capter 7 in arizona.

thank you.

[debee]

You can discharge a HELOC debt but not the lien. Since the HELOC is behind the first mortgage, if the house is underwater, there isn't much motivation for the HELOC to foreclose. Many people on this forum have discharged their seconds/HELOC, discontinued paying, and then gone in with an offer in the 5-10% range and had the lien removed that way. It's a gamble.

[lrprn]

mililaniman, I moved your thread from where you originally posted it to here in the General Bankruptcy Talk forum. This is a better place to post specific personal mortgage refinance and Ch 7-related questions like yours.