HELOC with sub-640 credit score

[Loren Thomas]

Long story short: Closed up electrical business and filed chapter 13 last fall, and went back to work for THE MAN. I believe we may have enough equity in our house to get a HELOC and pay off the BK. I've read it's possible, but I can't seem to find anything about terms offered for this sort of loan (bad credit heloc).

Is this flawed thinking? The heloc would be 3-400/mo, whereas our monthly BK payment is 1,100/mo, I can't think of any good reason to delay getting the monkey off our back and start a new chapter (no pun).

I think in the business of real estate investing good credit is crucial to a lot of things if you want to start well or grow, so in my mind the sooner we get the BK in the rear window the better.