Legal Question in Bankruptcy in Virginia

deficiency judgement after bankruptcy discharge

We were in the process of working out a short sale and had to file bankruptcy. the short sale is still being worked out. The debt on the house was discharged. But can the lender file a deficiency judgment for the difference after the short sale. I assume that whole debt was already discharged.


Asked on 4/23/09, 8:59 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: deficiency judgement after bankruptcy discharge

If the debt was discharged as it should have been, there would be no deficiency judgment.

You may want to seek legal advice on whether it makes sense to do a short sale under the circumstances and thereby assume the liabilities of a seller. It may be better just to let the lender foreclose.

Read more
Answered on 4/23/09, 10:40 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Virginia