Will Chapter 7 Stop A Deficiency Judgement Against Me?

Bankruptcy Attorney

Many times when a person or family is unable to continue paying their mortgage for any number of reasons including sudden or unexpected unemployment or disability/injury, the lender will choose to initiate foreclosure proceedings against the home. This means that the lender will be able to repossess and sell the home to recover the remaining balance on the loan.

If the lender sells the property for less than what is owed on the mortgage they can then, in some states and in some cases, be able to bring action or sue the individual for the remaining amount. This is not true in all states and in many cases the lender will not even bother as the cost of litigation can in some cases exceed the amount they were attempting to recover.

If you live in a state where the lender is allowed by law to sue for any “deficiency” then you may want to discuss your options with a reputable and qualified, Ohio bankruptcy attorney. If you have other debt like credit cards or other unsecured loans, then bankruptcy may be a good option as once the house has been foreclosed on and sold, any amounts outstanding are now considered unsecured and you may be able to have them discharged through bankruptcy.

Leave a Reply

Your email address will not be published. Required fields are marked *