HELOC in bankruptcy

Generally Bankruptcy law does not permit you to get rid of voluntary loans like HELOCs in any state.

Jeez attorney...did you do any research? Everything I have read says you can.....

http://www.debtconsolidationcare.com/bankruptcy/chapter13-lien-strips.html

Applicable BK code section. 1322(b)(2).

What is it: In a nutshell, you can remove an inferior lien (i.e. 2nd mortgage, HELOC etc), from your primary residence in a chapter 13 if the value of your home is less than the superior lien (i.e. 1st mortgage)
Example, Home A
1st Mortgage, $160,000
2nd Mortgage, $40,000
Home Value, $155,000
In a chapter 13, you can remove the 2nd mortgage on Home A
Home B
1st Mortgage $180,000
HELOC $50,000
Home Value $190,000
You CANNOT strip the HELOC from Home B, nor can you reduce the principle amount of the HELOC.

What you need to do to strip a lien:
1. Pay for a professional appraisal of your home from a certified appraiser.
2. File your chapter 13 BK and state in your chapter 13 that you are striping the lien
3. File a motion to remove the lien (attaching a copy of the appraisal).
Local procedures may vary on exactly what you need to do.

RISKS (the catch).
In order for the lien strip to stick, you must receive a discharge of your chapter 13. If your chapter 13 is dismissed or converted to a 7, you will lose the lien strip and more than likely lose your home because you have not been paying your 2nd mortgage during the chapter 13 (it would be very hard to get caught up). If during the chapter 13, you become eligible for a chapter 7, you should first look at requesting a hardship discharge of your chapter 13 under BK Code 1328(b) to preserve the lien strip.

Thus, even if you are eligible for a lien strip, if your budget is tight or there is a greater than average risk of you not being able to complete the 13, a lien strip may not be in your best interests (assuming you want to keep the home). After all, only about 40% of chapter 13's actually make it to discharge.

Note, these rules do not apply to investments properties, you can modify the mortgages of investment properties in a chapter 13.

11 USC 1322(b)(2) reads:
(b) Subject to subsections (a) and (c) of this section, the plan may--
(2) modify the rights of holders of secured claims, other than a claim secured only by a security interest in real property that is the debtor's principal residence, or of holders of unsecured claims, or leave unaffected the rights of holders of any class of claims

Therefore, according to the law you quoted, since a Home Equity Line of Credit is secured on the OP's principal residence the rights of the HELOC lender cannot be modified.