home equity line of credit
i currently do NOT have any equity in my home. But i do have approximately $5,000 available on my home equity line of credit. (i used the actual principle for my calculation of equity). What happens to this avaiable credit when i go bankrupt. Can the trustee ask me to write a check for the 5,000 to put towards other creditors?
Posted from: Ontario
This is the first time any one has ever suggested/asked this question… Your trustee has no right to ask you to incur an additional $5,000 in debt just because you have room on your line. Of course, the bank may reduce your line of credit or chnage it into a term loan once you file, so it may be a moot question.