Eureka, CA Bankruptcy Law Firms & Lawyers

Answering some of your questions requires a lot more information. You seem to be well-informed about the effect of a bankruptcy discharge on your mortgage note obligations. It has become the practice of most lenders not to send any information about payments made under a non-reaffirmed mortgage note, and there is not much to be done about that. I expect that a foreclosure would have a negative effect on your credit. A short sale might or might not have such an effect, but if it led to a negative report, you have the right to append a statement of up to 100 words explaining anything in the credit report, and you could use it. As between the two, a foreclosure is more likely to have adverse credit effects. But there is as third option, which you might have already attempted. This is a 'deed-in-lieu' of foreclosure. Basically you just reach an agreement with the lender that you are deeding them the property and you are walking away. The bankruptcy discharge protects you from a deficiency claim. Good Luck.

The answer to every legal question is the same it depends. More information would have helped me to provide a more detailed answer to your specific question. Bankruptcy will not stop a criminal court from proceeding against you and it may not prevent a family court proceeding either. But it is true that bankruptcy does stop most kinds of civil court proceedings from going forward, although there is always that period of time between the filing of a bankruptcy and the creditors getting notice of the bankruptcy.

Like the answer to most legal questions, the answer to this question is it depends. Once your chapter 7 ends, if you are still behind or if you haven't reaffirmed the debt with the lender, the lender can repo it...just like they can right now.