home equity line of credit

August 23rd, 2011 by Questions

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


One Response to “home equity line of credit”

, A licensed trustee said:

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.

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