Experience Visit http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint). The Markus webpage also contains more information on
Education/Credentials J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here
Question We filed a chapter 7 bankruptcy in October 2005 in Tennessee. We opted to keep up our mortgage and home equity credit payments to keep our home. Unfortunately, our situation has changed and we are getting behind in our payments. Are we protected from a deficiency judgment in case of foreclosure via the bankruptcy -- or have we lost that protection by not specifically including our mortgage in the bankruptcy?
Answer You are required to "include" (meaning listing) all assets and all debts in any bankruptcy case. A failure to do so is grounds for denial of discharge and can subject you to sanctions.
Assuming that you properly scheduled your mortgage debt and did not enter into a reaffirmation agreement, and assuming you have not subsequently modified your loan, then you have no further obligation to pay on that loan and there can be no deficiency judgment against you after foreclosure.
