All items connected to construction of new whatever should be covered by construction loan. Ask your lending institution for this in black and white and put it with your records should the question ever arise. Never put your trust in “they” or “they said”. Get it in writing so it is defensible.

The answer to your question is pretty complicated. I would definitely contact a financial professional and discuss this before making any decisions regarding bankruptcy.

The short answer is the debt may be forgiven if it’s directly part of your bankruptcy. But you’ll still have a foreclosure on your home and the lender of the home equity loan and home equity line of credit could put a lien on your home, but it’s doubtful they could force you to sell or leave your home. You’ll really need to talk with them about that. Be up front about your situation and see if you can work out a solution in both your best interests.

Remember, your credit will be shot for several years after a bankruptcy and it won’t help to have a foreclosure as part of your credit history. This is a bad time to have really bad credit. You’ll have a lot of difficulty getting loans in this market with terrible credit.

If there is any way you can avoid bankruptcy and foreclosing on your equity loans, I recommend taking that route. It will save you a lot of headaches and financial stress down the road.

If there is anyone else on these products they will gain the debt, otherwise they will be forgiven. Depending on if you used your house for sercurity will result in you keeping or losing ur home.

it is called foreclosure

lets all forgive and love, like jesus does for us

Depending on the age of your children – if they are over 14-15, liquid savings accounts, student loans and grants would be best. Check with your state to see if you can contribute to a 529 plan – if your children are very young, you can contribute to this state-run fund and pay toward a tuition today that will cost much more in the future due to inflation – even low (2%-3%) inflation. One caveat is that some states’ plans are better than others, of course, and the expenses (listed as “expense ratio”) can be high (anything over 1%). You could check with Money magazine or SmartMoney websites (or the library) that reviews these programs from time to time. I would strongly discourage you from using your 401(k) loan option. While there are Student Loans to pay for tuitions, there are no Senior-aged Person Loans to pay for what could be a 20-year retirement. Plus, you’re putting in pre-tax dollars into your 401(k) and if you borrow from it, you will be paying it back with after-tax dollars. Then, when you reach retirement, you will pay taxes a second time when you draw it out as ordinary income – hence double taxation.

Refinance your home and take enough $$ to pay for college.

home equity loan is usually “cheap money”
student loans are a 2nd choice…the interest rate is usually a bit higher, but it’s still tax-deductible

any money paid should be paid directly to the school (not to the student to pay the school) to keep tax deductions clean & completely accurate

None……………

Try this-