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Does Ch. 7 prevent a foreclosure deficiency judgment?

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    Does Ch. 7 prevent a foreclosure deficiency judgment?

    I am in the process of filing Chapter 7. Also, my house is in foreclosure and will be sold at a sheriff's sale. The lender is going to take a loss on the house. The sale will probably take place after the Chapter 7 discharge is completed.

    Does my bankruptcy prevent me from being hit with a deficiency judgment by the mortgage holder? If not, what can I do to prevent a deficiency judgment?

    Thank you for your help!

    #2
    Generally yes, any deficiency judgment should be dischaged in your Bankruptcy (assuming you list the creditor etc). FYI, many states do not allow mortgage companies to pursue deficiency amounts on foreclosure in the first place.

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