What happens to the HELOC of a investment home that gets foreclosed.
Does the HELOC become a unsecured debt? or does it just go with the house?
I ask this because if i have to file a 13 i would be over the debt limits but if i let the house go into foreclosure first then that would put me under the debt limit unless the 2nd gets counted as a unsecured creditor and i have to include that in my BK then i would not qualify as my unsecured debt limit would be over the limit.
The main reason to file BK is to protect my self from the homes after foreclosure. (i have more than one)
So what i need to know is does the 2nd have to be reported as Unsecured debt on my bankruptcy paperwork so i can get it discharged or does it get tagged along with the 1st and I might be 1099 for it along with the 1st? so i dont need to include it at all. Just prove insolvency with the BK so i dont have to pay taxes on it.
hope this makes sense.
Does the HELOC become a unsecured debt? or does it just go with the house?
I ask this because if i have to file a 13 i would be over the debt limits but if i let the house go into foreclosure first then that would put me under the debt limit unless the 2nd gets counted as a unsecured creditor and i have to include that in my BK then i would not qualify as my unsecured debt limit would be over the limit.
The main reason to file BK is to protect my self from the homes after foreclosure. (i have more than one)
So what i need to know is does the 2nd have to be reported as Unsecured debt on my bankruptcy paperwork so i can get it discharged or does it get tagged along with the 1st and I might be 1099 for it along with the 1st? so i dont need to include it at all. Just prove insolvency with the BK so i dont have to pay taxes on it.
hope this makes sense.