Charges do not automatically go away in bankruptcy; a bankruptcy discharge does not extinguish a charge on property.

A charge is a claim by your creditor against some specific item of your property. The property guarantees payment in the event that you fail to make the required payments. A mortgage charge gives the creditor the right to force the sale of your property (called “collateral”) which you have pledged as security for your home equity loan. Your home may be subject to more than one charge (e.g. a “second” mortgage). If you fail to make payments, the creditor may enforce its right by taking the property, or foreclosing, in order to get paid off. Bankruptcy does not block that foreclosure sale (see our discussion below on the effect of bankruptcy on foreclosures).

If you do nothing, you are still responsible, the charge is not cancelled, and you return to the same position as if no Bankruptcy Order had been made (i.e. the creditor can repossess or foreclose).