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Thread: Question about BK on a Line of Credit California

  1. #1

    Default Question about BK on a Line of Credit California

    Hi everyone and Thanks for taking the time to look at my question. Also Happy 4th of July!

    I own my house out right, but I pulled a line of credit against it. I pulled $165,000 and then pulled another line of credit of $85,000 (bank was trying to give me more!!). So I have a total of 2 line of credits on the house.

    If I claim BK will it wipe out both line of credits? The house is only worth about $100,000 and I'm on a fixed income.

    Any help would be great, Thanks

  2. #2
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    You can get a Nolo book on bankruptcy - it will furnish you with a lot of information.

    However, your best bet is to talk to a bankruptcy attorney - someone you can furnish complete details re your assets/income to along with your debts. They can help you decide if bankruptcy is the best way to go & if so whether to file a Chapter 7 or if possibility a Chapter 13 might be best for you.

    They can answer all your questions. You can generally get a free or low cost initial consultation.

    In "some" cases/situations both lines of credit can be wiped out. It depends on the type of bankruptcy & other various factors.
    Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

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  3. #3
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    I too recommend a lawyer to help you sort through this but here is a site that gives some general information on this topic http://www.ehow.com/info_10050765_ca...ankruptcy.html
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  4. #4
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    OP, I did a google search previously (which you can do also) & came up with several websites with general info on the topic but it can get a little complicated when you have 2 lines of credit on your house. (some don't even mention 2 lines of credit) That is why I suggested your best bet is an attorney. You'll most likely need one anyway.

    Nolo has books with lots of bankruptcy information but even then I would talk to a bankruptcy attorney.

    PS -I do agree though that the link above will give you some general information on the topic.
    Last edited by Betty3; 07-06-2012 at 09:04 AM. Reason: add PS
    Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

    Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

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