Q. Is an equity line of credit dischargeable under bankruptcy?

A. If the HELOC was obtained in good faith (honest appraisal, valid income, credit score, etc.), it is dischargeable.

However, bankruptcy attorney Leon Bayer of Bayer, Wishman & Leotta in Los Angeles says the lien remains against the property unless you lose the property in a foreclosure conducted by a senior lien (your primary mortgage lender). It does not automatically go away.

He adds, however, that in some cases it can be removed in Chapter 13.