Pinecraft, FL Bankruptcy Law Firms & Lawyers

Bankruptcy will Discharge your unsecured debt, but not your student loans (would still have to be repaid). So it is a great way to get you out of the burden of most of your bills. The disadvantage is a bankruptcy gets reported to your credit report, but that is not all that bad usually since most bankruptcy filers already had a blemished credit report due to the unpaid debt.

If the loan in question was a purchase money loan (that is a loan used to purchase the property), the lender cannot collect a deficiency (the difference between the sale price of the property and what is owed). If the foreclosure is non-judicial (sale of the property on the courthouse steps), the law does not allow for a deficiency whether the loan is purchase money or not. If the loan is not purchase money and the foreclosure is judicial (the lender files a law suit), a deficiency can be claimed by the lender. Typically, the exposure that borrowers have is liability for sold-out seconds (junior loans that are wiped out by the foreclosure of the senior loan). Once again, if the loan (the junior loan, in this case) is a purchase money loan, there is no claim for deficiency allowed. If the junior loan was a refinance or was made for something other than purchase of the property, the debt becomes unsecured (just like a big credit card bill) and the lender could sue you to collect it.

I would be happy to speak with you regarding your son's situation.  My firm covers Collier, Lee, Hendry, DeSoto, Charlotte, and Glades Counties.  Please contact me.  It is a free consultation.