February 4th, 2011 by Questions
When a personal line of credit is opened and is an asset to be held as security with this be covered by bankruptcy?
Posted from: Ontario
February 05, 2011 at 10:14 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
A bankruptcy is designed to deal with unsecured creditors, not secured ones.
The only way a bankruptcy will impact a line of credit that is secured to your home, or any other secured creditor for that matter, is if you return the property prior to bankruptcy
(i.e. have the property forclosed on). Then if the sale proceeds are not sufficient to cover the full balance of this line of credit then this shortfall can be cleared by filing bankruptcy.
Log in to Reply
Please post a follow up comment below:
(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)
You must be logged in to post a comment.