Chapter 7 Debt Relief And Asset Protection

A deficiency judgment is the debt due or remaining to a bank after the completion of a foreclosure. With Bristol real estate values at historical lows, it is rare that banks receive the full mortgage balances owing in foreclosure actions or other forms of home loss.  Bankruptcy avoids deficiency judgments and the potential disastrous tax consequences of home loss through foreclosure, short sales or deed-in-lieu of foreclosure.

Avoiding a deficiency judgment should always be the goal of homeowners with the assistance of experienced and highly qualified foreclosure defense attorneys like the Bristol lawyers at the Law Offices of Neil Crane.  Proper preparation and a complete understanding of the means testing requirements of the new Bankruptcy Code can preserve your right to avoid deficiency judgments and obligations due under the first or second mortgages or credit lines. We’ve been providing legal answer to financial questions since 1983.

To learn more about avoiding foreclosure and saving your home, call the experienced attorneys at the Law Offices of Neil Crane at 203-230-2233 or toll free at 1-888-249-3027.  You’ll always speak with an attorney – We never use voicemail.

Avoiding Deficiency Judgments Through Short Sales, Deeds-in-Lieu and Chapter 7

There are three basic methods to avoid deficiency judgments created by foreclosure:

Chapter 7: Through a properly prepared Chapter 7 case, the Bankruptcy Code protects your future by discharging debt and personal liability for a deficiency judgment, credit line, second mortgage or other lien.  This prevents the bank from proceeding against you or any of your other exempt assets or future earnings.

  • Full discharge under Chapter 7.  It is imperative to take early steps to analyze your situation and properly prepare to assure a full Chapter 7 discharge.  Under the newly restricted qualifications for Chapter 7 and stringent guidelines for means testing, the early involvement of our experienced attorneys is the key to qualification and success under Chapter 7.

Short Sale: This is the process whereby you sell your house and the bank allows the sales proceeds to satisfy the total debt outstanding.  While this can be an excellent result, it is often difficult to accomplish.  Short sales are uncommon in today’s difficult banking environment where large institutions often utilize many different people who speak with many different voices.  Banks rarely coordinate all the parties necessary for a successful short sale.  Short sales can be achieved when properly examined and pursued with the benefit of experienced short sale attorneys.

Deed-in-Lieu of Foreclosure This is the process where, through negotiation, your lender agrees to accept the title to the property in full satisfaction of your outstanding mortgage debt.  This is an excellent result, but it is rarely seen.  It can also be made more difficult when the homeowner has junior liens, credit lines or attachments.  A deed-in-lieu requires complete cooperation, assistance and permission from all lenders.  This is not always available with mortgage lenders and servicers.  Always work with an experienced bankruptcy attorney to maximize your chances for success by being certain that a deed-in-lieu will completely resolve all your financial difficulties.

Contact The Law Offices of Neil Crane, LLC

Protect yourself from deficiency judgments or remaining lien obligations.  Call us today at 203-230-2233 or toll free at 888-249-3027, or complete our online Contact Form to schedule a free consultation.  When you call us, you will always speak to an attorney.  We do not use voicemail.  We are committed to providing excellent service and legal protection.