Your home is under water

The mortgage exceeds the current value of your home.

What is a short sale?

The contract price on your house is less than the balance (s) owed on the mortgages held against the house.

Can a bankruptcy protect me from foreclosure?

You must make your mortgage payments on your  house in order to keep it.  Sometimes, however, you may “cure” or catch up back payments that you are behind on in a Chapter 13 bankruptcy.

What does stripping a mortgage mean?

Sometimes a second mortgage or equity line of credit may be “stripped” or removed from your homestead property.  If  so, then the second mortgage may be discharged in a bankruptcy as an unsecured debt.

Are there debts that a bankruptcy will not discharge?

Student loans, alimony, child support, most taxes, court fines and restitution are non-dischargeable as well as debts that are obtained through fraud or deception or debts incurred as the result of driving under the influence of drugs or alcohol.

Can a discharge be denied if you filed bankruptcy?

A discharge may be denied if you conceal assets or make a false oath.

If my credit report states an account is charged off is the debt forgiven?

No, the debt may still be owed to the creditor.  If the debt is written off,  the creditor may still send it to a collection agency.  If the debt is forgiven, however, the creditor may issue an IRS 1099 form. You may then owe taxes on the balance forgiven.

Can filing bankruptcy stop a garnishment?

Yes.  When you file bankruptcy an “Automatic Stay” takes effect, stopping collection actions such as garnishments.