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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I have been unemployed for the last year, unemployment of $1800.00

Customer Question

I have been unemployed for the last year, unemployment of $1800.00 per month is my only current income. I have been paying a debt consolidation company on three credit cards, current balance of approx $10k. My home is in short sale process. Realtor has an offer pending BofA acceptance. Offer is about $100k less than bal on loan + closing costs. My realtor has advised me to consult with a bk attorney re the possible tax liability on the deficiency. What would be my best option?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 5 years ago.

So sorry to hear of your difficult situation.

I am a lawyer with 25 years experience. While I am not your lawyer and do not represent you, I will endeavor to provide you with legal information through this open and nonconfidential forum.

You may want to consider filing a chapter 7 bankruptcy. A chapter 7 bankruptcy would eliminate the deficiency on your mortgage, the credit card debt and most other unsecured loans. There would not be any income recognized as a result of the discharge of indebtedness and you could walk away from the house without going through the short sale process.