Foreclosure Then Chapter 7 or Vice Versa?

[Tweets007]

We have decided to walk away from our home here in CA and want to file Chapter 7 mainly to protect us from any deficiency the bank may come after us for (and cc debt as well). We are currently only two weeks late on our mortgage payment. Here is my question:

Do we wait until the bank starts foreclosure proceedings to file Chapter 7 or should we go ahead and start now? Does it matter?

Like I said, my main concern is that they cannot come after us for any deficiency should they decide a deficiency judgement against us.

[ameliabedilia]

Have you decided for sure to file? and have you run all the numbers? I would file bk sooner rather than later because you can quit paying your cc's and you won't have as many late payments on your credit report.
Here is a good link with lots of questions and answers about this

http://www.debtworkout.com/walk_away_foreclosure_main.php

[deafbroke]

File first. you can list the house as a debt that way. To be sure check with bankruptcy attorney.


DB

[b_girl]

File first...they will still have to foreclose, but your debt should be discharged by then.

[AngelinaCatHub]

Yes, the sooner you file, the sooner you are off the hook. Get it over. Also, you may avoid the bank calling you every day. 'Hub

[Tweets007]

Well.....there seems to be a consensus!!! Thanks for the feedback and I'll take a look at the website.

[Help!]

I agree with everyone else, as long as you are below the median for CA. If you are above the median (or would be based on your income in the past 6 months) you will want to run the numbers on the means test to be sure delaying filing isn't better for you.