Legal Question in Bankruptcy in Pennsylvania

Bankruptcy - foreclosure

I have been foreclosed on in a property in FL. I reside in PA. The house has not gone to sheriff sale as of yet. If I file Chapter 13 prior to the sale, how do I account for that property and possible deficiency judgement? Am I responsible for anything for that property with filing prior to the sale or does that not make any difference? I could not file bankruptcy prior to the foreclosure although I know that would have been better.


Asked on 11/06/07, 1:09 pm

2 Answers from Attorneys
Teresa Brady Law Office of Teresa Brady, Esquire

Re: Bankruptcy - foreclosure

When you file your chapter 13 bankruptcy, the entire cost of the property will be included in the bankruptcy- you will not owe anything else.

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Answered on 11/06/07, 1:51 pm
Matthew Nahrgang Nahrgang & Associates, P.C.

Re: Bankruptcy - foreclosure

Pennsylvania has a law known as the deficiency judgment act. It provides that a mortgage company who receives a property through a sheriff's sale may attempt to recover any deficiency. However, it is rarely used as mortgage companies are usually satisfied with recovery of the property. Moreover, I do not know if Florida has any similar law.

You have 2 choices: 1) wait and see if they actually make a claim for a deficiency and deal with it then; 2) consider a bankruptcy to eliminate the possibility and any other debt you have.

I trust this answers your question, but feel free to call or E-mail on a free initial basis.

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Answered on 11/06/07, 4:09 pm


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