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    Heloc interest question

    My BK13 was confirmed earlier this month.Have 1st and heloc thru WF.Am a couple months behind on both with the arrears paid thru my plan.Needless to say statements stopped once I filed.Have been making my payments on time outside of plan by calling WF bankruptcy dept.After making my last heloc payment the agent mentioned no interest is being charged....???? She said she would forward to me their "internal statements" for me to use for reference of my payments being credited. Sure enough got a statement in the mail and lists both interest rate and current interest charge as 0...This was a NowLine credit card secured as a 2nd lien... does this mean no interest charges while I'm in bankruptcy? If so as long as I make my payments this could be paid off before my 60 months. :-) ... am I looking at it correctly???

    #2
    It may be. It depends on how this HELOC was treated in the bankruptcy. If the claim filed by the HELOC bank lists it as unsecured, then it would get 0%. it would also be discharged once the Chapter 13 case is completed (and discharged).

    You would need to look at the claims, 13 Data Center, or speak with your attorney to see how your Chapter 13 Plan treats this HELOC.

    Do you know if you did a lien strip (which would make this an unsecured debt at 0%)?
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

    Comment


      #3
      No lien strip...heloc partially secured.I'm on pacer and at this point they haven't filed a claim on the heloc...they did on the 1st.

      Comment


        #4
        I do not know what to write. I would be concerned only in that you don't have a lien strip and there is no claim filed. It would be a shame to get to the end of the plan and have issues since the lien would survive the bankruptcy discharge.
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

        Comment


          #5
          Oh I know the lien isn't going anywhere.its only a 7k heloc and if interest isn't being charged at my current payment it would be paid off in 48 months...if monthly statements show 0 interest can they come back in 5 years saying I owe X amount of interest or fees?? I mean after BK is discharged? Pre BK the interest was 19.99% and basically was making payment for the interest....I would love if this got paid off during my BK.

          Comment


            #6
            Yes, it would be nice if you pay it off within the 4 years of your bankruptcy and they send a Satisfaction of Mortgage. That would be spectacular. If the lender set the interest rate at 0%, then I guess that is their own doing and they are just not charging you interest. I guess one could argue, if necessary, that they changed the interest rate and you paid them what they asked for.
            Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
            Status: (Auto) Discharged and Closed! 5/10
            Visit My BKForum Blog: justbroke's Blog

            Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

            Comment


              #7
              Now im confused...my bar date was the 17th so got on PACER and NDC-WF filed a claim on my HELOC as unsecured-WHATTTT??? Since they are charging me 0% interest my current payment will pay it off in 47 months-Im assuming the lien would then be released-correct? If something happens and I quit making the payment to them would the lien still be released when my BK discharges since they filed an unsecured claim? Why would they file an unsecured claim on a HELOC? They cant come back after BK dc and try to charge me fees could they?

              Comment


                #8
                Is it possible they didn't secure the lien? Did they record a mortgage or deed of trust?
                LadyInTheRed is in the black!
                Filed Chap 13 April 2010. Discharged May 2015.
                $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

                Comment


                  #9
                  I looked on my county recorders website and all I see is the 1st mortgage...would the 2nd be listed there as well...is there another site I should be checking for a lien??

                  Comment


                    #10
                    Originally posted by mmptysmom View Post
                    I looked on my county recorders website and all I see is the 1st mortgage...would the 2nd be listed there as well...is there another site I should be checking for a lien??
                    The second should be recorded at the same place. It sounds like they didn't perfect their lien.
                    LadyInTheRed is in the black!
                    Filed Chap 13 April 2010. Discharged May 2015.
                    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

                    Comment

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