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Possible short sale on my house but will filing bankruptcy prevent the sale going thr

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What is the name of your state? VT

I have a possible short sale offer on my house due to close in June if the bank approves it. I am about to file chapter 7 bankruptcy without a lawyer and wanted to know if doing so now will somehow stop the sale from going through. Apart from my consumer debts, I wanted to file to protect myself from the second mortgage company coming after me after the house is sold even if they approve the sale in the first place.

You see when I filled out the Bankruptcy Schedule D, I stated the value of my home was $260,000 and my first Mortgage was $240,000 and my second Mortgage was $50,000. In the column "Unsecured Portion", I put $30,000 and this is the amount the second mortgage company will lose if they accept the short sale****************************but I am worried that they will come after me for the $30,000 after and if short sale goes through.

So will my bankruptcy petition protect me against the second mortgage company?

Thanks for the advice
Patrick
 


Zigner

Senior Member, Non-Attorney
What does your BK attorney say?

EDIT: I know you said you are doing this without an attorney.
 

bigun

Senior Member
I'd not worry about a short sale. You're filing bk-just list all mortgage holders in your petition and let it go.
 

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