What Happens to my 2nd Mortgage/Home Equity Loan in Ch. 7 Bankruptcy?
Many clients are concerned with what will happen to their second mortgage (also referred to as a Home Equity Loan, Home Equity Line of Credit or HELOC) during and after Chapter 7 Bankruptcy. What is Second Mortgage? In general, second mortgages or HELOCs are loans that property owners get. The value of the property above the amount of the first mortgage secures these loans. The difference between what the property