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The Chapter 7 filing would not necessarily list this particular creditor because official business with them would have been legally finished by the short sale.
The only thing pending would be whether they would pursue a deficiency judgement in court at a later date on the short sale. They have 5 years in Virgina to do that! The concern is that they will pursue a Deficiency Judgement 4 1/2 years after the chapter 7 has been filed therefore making the chapter 7 filing not able to protect you from this particular creditor and the consequences of this particular loan. Can a bankruptcy judge pre-empt potential lawsuits that have not yet been (the future deficiency judgement) by declaring it part of the current liabilities even though Bank of America has not chosen to persue it as yet? Settling the short sale would open one up to potential a deficiency judgement on the short sale in the future - not in the present but it appears that the chapter 7 only deals with the recent present.
Do not understand, specifically: 1) If I file bankruptcy TOMORROW and Bof A gets a deficiency judgment later in 4 years DUE to the short sale completed TODAY, Can this bankrutcy filed TOMORROW protect me from this FUTURE possible judgment fthat BoA is not saying today that they will pursue ? Is it legal to add This potential future judgement to the bankruptcy filed today?
IE; bank could suit me in the future (beyond 12 months up to 5 years), does a bankruptcy today protect me from the future rights of others to sue/
Thank you for the answer, last question:and will click accept. If BofA exercises its mortgage protection insurance thru a third party and the third party comes after me in 4 years, How do I protect myself from this 3rd. party? What can I do to avoid BofA sell/transfer/use that credit to others? Do you file something against BofA?
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