Legal Question in Bankruptcy in Illinois

options:

1. Sale

2. Make payments;

3. Rent out;

4. Deed in lieu

5. Short sale;

6. Wait for foreclosure and defend

7. Bankruptcy

8. Nothing and see what happens

Thank you for your question. I am sorry to hear about your predicament. Bankruptcy may be an option for you. Is it your intention to maintain the condo? If you file bankruptcy, any foreclosure proceedings must stop immediately. If you file a Chapter 13, this would allow you to keep paying on the mortgage and keep the condo. Conversely, if you file a Chapter 7 (provided you are eligible to do so) the condo will be foreclosed upon however you will not be responsible for the debt. Is there any equity in the property?

If you do not file bankruptcy, the bank will foreclose on the property and sue you for the amount owed. Thus, I think bankruptcy may be a solid option for you. Please feel free to contact me should you have any follow up questions. I can best be reached via email: [email protected]

Thanks again.

If neither of you can afford the property in question, a sale is preferable from the standpoint of protecting your credit rating. I assume that when you do find the "right one" you will want to buy again. Each of you can make 1/2 payments, of the current mortgage and the arrearage, but I'm betting that this is out of the question. If it were me, I would beat the bank to the punch, and file a BK. Much cleaner that way. Joe does make a great point: WHO is the lender? If it is a sub-prime lender, there is a chance to defend this case for a long, long time.