Expert: Mark J. Markus- California Bankruptcy Attorney - 9/30/2008

Question
I am in the process of filing Bankruptcy and just had my meeting with the trustee. He asked if I was planning on keeping my house. I had excluded my car and house from bankruptcy and have not signed any reaffirmation agreements yet. I am looking for a job right now and hopeful I will find one but if I can't make my house payment in a couple of months is it too late to have it as part of my bankruptcy? I owe $70,000 more than it FMV right now. If I foreclose separately am I responsible for the difference? I am so scared. What are your thoughts? Please help!

Answer
Unless you failed to disclose your ownership of your house and the corresponding secured debt on your bankruptcy papers, then it already IS included in your bankruptcy case, and if you later default and it gets foreclosed on, you will not owe a deficiency judgment.   There may be tax consequences, but usually not.  (that's a very complicated area--beyond the scope of this service).