My in-laws filed Ch. 7 and it was discharged on/around 12/31/2005.
They have a home equity loan worth with a balance of more then the value of the house. They've been unable to sell the house. The home equity line was part of the bankruptcy.
After the bankruptcy was discharged - they stopped making payments on the home equity line. I don't believe that a reaffirmation agreement was signed.
The bank is doing nothing - nothing that can be seen anyway - and property taxes are accruing and not being paid.
Questions:
1) How bad of a mess are they in?
2) Can they transfer the deed of the house to the bank and walk away?
3) Aside from the house itself - can the bank go after any additional assets?
4) Are they liable for the difference between the ultimate value of the house and the balance of the mortgage?

