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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17125
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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A bank foreclosed on my rental property in January. They are

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A bank foreclosed on my rental property in January. They are continuing to rent it to my tenants and apparently are not trying to sell it. How long does the bank have to put a judgement against us? Perhaps more importantly timing wise, can we file bankruptcy and include some future judgement?

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification.

Customer:

Hello

WALLSTREETESQ :

Yes,

WALLSTREETESQ :

When the bank foreclosed they did not obtain a judgment against you at that point?

Customer:

No.

WALLSTREETESQ :

Regardless of the bank receiving a judgment, if you file a bankruptcy at any time, the judgment would be discharged through a chapter 7 bankruptcy.

WALLSTREETESQ :

You can file bankruptcy now, and include the mortgage and any debts you may owe to the lender and it would be discharged even without them having obtained a judgment.

Customer:

I am concerned that if we filed bankruptcy now, and a judgement is given later, after they sell the house and see what the difference is, that we can not discharge that amount.

WALLSTREETESQ :

that would not be possible, as you would list the creditor now, and the mortgage they had on your petition.

WALLSTREETESQ :

Once you file a bankruptcy, any law suit or civil action must stop,

WALLSTREETESQ :

What you would have to do now is make sure that you list the proper creditor and mortgage lender, this would be found on your credit report.

Customer:

So in essence, the foreclosure started that process and a chapter 7 could stop it. Ok, thank you

WALLSTREETESQ :

Yes,

WALLSTREETESQ :

This is a common practice, you do not have to wait till an actula judgment to discharge debts, you would just list the creditor and the amount of the debt, and file. They would be discharged.

Customer:

Thanks, XXXXX XXXXX good evening.

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