Deficiency Judgement Dismissed In BK?
Working with a seller who wants us to take the house of her hands, but intends on filing Chapter 7 after the SS. Would rather get the deficiency judgement (if it can be dismissed via the BK) than a 1099.
Would a deficiency judgement be dismissed if she filed a Chapter 7? What if the judgement came down the line after the filing of the BK?
Any ideas, anyone?
Thanks!
polina
There can be no deficiency judgment filed once the BK is filed.
If they have a deficiency judgment prior to filing, that judgment would be discharged as to the borrower IN the BK. But remember that a judgment is an additional ding on the homeowners credit.
The Trustee in Bankruptcy might have cause to look at your deed transfer if it occured within six months of the filing of the Bankruptcy. He would be looking for a recoverable asset. To do this he might ask a court qualified appraiser to examine the property and ascertain if there was a recoverable value.
I have never seen this action waged with any success. The defenses are legion.
Cheers Lucius[ Edited by Lufos on Date 04/12/2004 ]
Thank you! Just the information I needed!
posherov