Deficiency Judgement In Chap 13?
Can a lender still pursue a deficiency judgement ( or issue a 1099 for the balance due on the note) after a short sale, if the homeowner has filed Chap 13?
part II
Is it any different for someone who has filed Chap 7?
under Chapter 13 the debts are restructured and new repayment plans are ordered for all creditors by the bankruptcy court. Because the debtor makes payments under the new plan there would be no deficiency.
no deficiency under Chapter 7 either as that plan calls for wiping out any remaining unsecured debt.