During the boom, many homeowners took out home equity lines of credit (HELOC) and are now struggling to repay those loans plus their mortgage.  Can a debtor discharge their HELOC in Chapter 7 bankruptcy and keep their home?  The short answer is no.  A debtor can discharge the home equity loan in Chapter 7 bankruptcy but they cannot discharge it AND keep their home.  However, if a debtor would like to keep their home, they may be able to file Chapter 13 …

Tags: Bankruptcy Chapter 7 Bankruptcy HELOC Home Equity Loan