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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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My house will go into foreclosure tomorrow; I am considering

Resolved Question:

My house will go into foreclosure tomorrow; I am considering bankruptcy because I've lost 19% of my income due to company reorganization and I will be unable to keep the home, but want to keep my car which i owe 5,000 on. Is bankruptcy right for me? I don't have a lot of debt - some medical bills
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 5 years ago.
Welcome to JustAnswer,

So sorry to hear of this dilemma. If my answer is not clear to you, please ask me for clarification by using the reply button.

A bankruptcy may be beneficial in the future. However at this point it appears to be premature as the deficiency judgment has not yet been entered by the court and you do not have a high amount of other debt. I will explain

When a property is foreclosed in Maryland, a judgment can be entered by the court for any amount of the loan that remains unpaid. This is called a deficiency judgment. The deficiency judgment can be used to execute on other property and wages of the borrower

You may want to consider waiting until the foreclosure is completed and the deficiency judgment is entered by the court. At that point you may reevaluate whether the amount of the deficiency warrants filing bankruptcy.

Please use the REPLY button if you have any questions concerning my answer. Otherwise please click ACCEPT so that I am paid by the site for answering.
Customer: replied 5 years ago.
So even though I know my home is now worth less than what I owe, you recommend I wait until the foreclosure is finished to determine how much I will owe the mortage company?
Expert:  Ellen replied 5 years ago.
Yes. A deficiency judgment is typically entered by the court if the amount of the foreclosure sale does not satisfy the amount of the mortgage. However not all lenders obtain a deficiency judgment. You may want to wait and see if your lender does obtain a deficiency judgment
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