Listing HELOC in CH 7

[rhp]

I am still on a HELOC for a property that I am not on title for, per my divorce. Where should I list this item? I'm confused since it doesn't seem it would be mine to surrender and I'm not sure if it would be considered tied to an asset still.

Right now I have it listed on sched. D as a secured claim, but is it still considered secured in this case?

If I do leave it listed in D, should I also list it as a secured asset it sched. A? And as "surrendered" in my statement of intention?

Thanks

[justbroke]

It's an unsecured claim since you don't own the property. It's just like any other unsecured debt. It will be discharged, BUT (the big "but") you are still liable for paying it if that's what your final divorce decree (and property settlement) states. In other words, the lender can't come after you, but your ex-spouse certainly can (and will).

[MSbklawyer]

I concur with JB's response. § 506 of the code tells you how to determine what is a secured debt: Translated into English, it says: A claim of a creditor secured by a lien on property of the estate is a secured claim to the extent of the value of the creditor's interest in the estate's interest in the property.

Since you down own any interest in the property, your bankruptcy estate doesn't own any interest in the property. Thus, unsecured.

http://codes.lp.findlaw.com/uscode/11/5/I/506