a deficiency judgment should be discharged in a chapter 7 bankruptcy. You should file after you receive the judgment.Im pretty sure this debt would be classified as a unsecured debt.Also, I could be wrong but if you have already filed a bankruptcy then the lender foreclosed and there is a deficiency , the bankruptcy would prove you were insolvent.I think you only have 90 days after you first file.Again I could be wrong. a deficiency judgment should be discharged in a chapter 7 bankruptcy. You should file after you receive the judgment.Im pretty sure this debt would be classified as a unsecured debt.Also, I could be wrong but if you have already filed a bankruptcy then the lender foreclosed and there is a deficiency , the bankruptcy would prove you were insolvent.I think you only have 90 days after you first file.Again I could be wrong.
Unclear whether the deficiency would be filed by the lender or by the trustee of the bankruptcy estate.
Generally, judgements survive bankruptcy.
Not if the debt was discharged in the bankruptcy. If the judgment was on the credit report before the bankruptcy was filed and/or was discharged in the bankruptcy, the entry will still remain on the CR for seven years.
Yes
If a judgment goes in the bankruptcy, it can be removed. The person who the judgment was for, has the right to request that it still be paid. In most Chapter 7 situations, the judge will decide in favor of the debtor.
Bankruptcy. Bankruptcy will not remove a judgment from the debtor's credit report. The judgment will still remain for the required time if it is discharged in bankruptcy, settled or paid in full. Valid judgments remain for the required 7 years. Most judgments are renewable and can be reentered on the debtor's credit report whenever that action is taken.
If both persons were sued and a judgment awarded but only the husband filed bankruptcy and included the debt; the judgment can still be executed against any non-exempt property belonging to the wife and perhaps jointly owned property as well. The legal presumption is that the debt is still owed because it was jointly incurred.
Here is the question, was the judgment placed under the bankruptcy? If so, you can dispute the items as part of the bankruptcy. If not, it is a separate entry and has the right to stand on it own.
If the mortgage is in both names, or if there is significant joint debt, you are better off filing bankruptcy jointly before the divorce is final. If the mortgage company forgives the balance, it will count as income to you and you will have to pay taxes on it in the following year, unless you file bankruptcy. Or the mortgage company can sue on the deficiency and get a judgment good for 10 or 20 years. Unless you file bankruptcy.
Yes, it is called bankruptcy. Move quickly though. If the lender obtains a judgment against you before you file bankruptcy, you will still owe on the loan.
No... Illinois is a recourse state.... They can come after you for a deficiency judgment.
Yes, you can walk away from a mortgage and not be liable for a deficiency (even in recourse states) if the mortgage was listed in the bankruptcy.
I will answer the 1st part of the question "What is a deficiency judgment tied to property".A deficiency balance is whatever is left of a loan when the security has been sold--such as a repoed car is sold for less than the loan amount plus repo costs, storage, title & taxes, the balance remaining on the loan after applying what the car sold for is a deficit balance.A judgment was filed by the lending company to recover whatever money is still due them anda judgment automatically ties to real estate property if the borrower owns a home.