Under new and exciting changes to Bankruptcy Law, it is now possible to file a Chapter 13 Bankruptcy repayment plan and treat your second mortgage or home equity line of credit (“HELOC”) just like a credit card. The process involves filing a lawsuit within your bankruptcy case and have the Court determine that the second mortgage or HELOC is wholly unsecured and therefore subject to avoidance. Through your repayment plan, you no longer pay on the second mortgage or HELOC directly but instead pay them through the plan payment, usually at pennies on the dollar. Once all the payment are made under the plan, the Court then orders the second mortgage or HELOC lender to release its lien and formally record that status with the county recorder of deeds.
Includes attorney fees, court filing fee,
credit report and the cost of both the
pre and post bankruptcy required classes.
As a general rule, the filing of a bankruptcy case by one spouse does not affect the credit rating or score of the non-filing spouse. However, any application for joint credit after receiving a discharge in bankruptcy will likely affect the approval of such application regardless of the non-filing spouse's good credit.
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1525 Kautz Rd., Suite 400
West Chicago, IL 60185
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Call:
630-587-7490
877-800-7501
Fax Number:
630-587-7493