true sale bankruptcy
Does Bankruptcy protect you from foreclosure judgement?
My brother an I own a home together I co-signed the loan). We are in the middle of a short sale right now that the bank has agreed to. My brother has filed for bankruptcy (not just the house but other debts). He is now telling me that I have to file for bankruptcy also!. He told me that bankruptcy will protect him from a judgment if the house eventually forecloses. However my broker told me that’s not true.
My question is: Since he filed for bankruptcy, will that protect him from future judgments if the house goes into foreclosure?. Also should I file for bankruptcy too.
Thanks
I’m figuring he’s filing a Chp 7,
What he is trying to say is that filing bankruptcy will discharge any shortage caused in the event the mortgage is foreclosed, As long as the mortgage is included in the bankruptcy, then he is correct,
You don’t have to file, however you will be on the hook for the shortage if the mortgage is foreclosed, so he is telling you to protect yourself,
None of us here know your situation so that decision up to you, You need to talk to a consumer law attorney,
