Home Equity Loan Impact

Summary

Taking out a home equity loan can impact your bankruptcy options. In Illinois, it is treated as secured debt. Chapter 7 may not eliminate it, while Chapter 13 might help restructure it. Taking a loan without intent to repay could be seen as fraud. Consult a local attorney for advice.

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How does taking out a home equity loan affect my bankruptcy options if i have to file in the future
Hello ****,
Bankruptcy laws can vary depending on your location. May I know where you're located so I can provide more accurate information?
Plainfiled, Illinois
Hello ****,
In Plainfield, Illinois:
- A home equity loan can be treated as secured debt in bankruptcy.
- If you can't afford payments, the lender may have the right to take your property.
- Chapter * bankruptcy may eliminate unsecured debt, but not a home equity loan.
- Chapter * bankruptcy might help restructure your debt including home equity loans.
Please consult a local bankruptcy attorney for personal advice.
Is taking a home equity loan out considered bankruptcy fraud
Hello ****,
Taking out a home equity loan isn't considered bankruptcy fraud. However, if you knowingly take a loan with the intention of not repaying it and then filing for bankruptcy, that could be seen as fraudulent. Always consult with a local attorney for personalized advice.