You can get rid of your deficiency judgement through a bankruptcy

By: Darrell Castle

Borrowers are usually astonished to learn they still owe thousands of dollars on homes they haven’t thought about for years, according to this article.

That’s happening to thousands of Americans who lost their homes in the housing collapse. Since then, some of them have been able to put in the effort and time to rebuild their finances, only to face the harsh reality of debt collectors harassing them for money they still owe.

The debt collectors freeze their bank accounts, garnish their wages or seize their other property.

The lenders and debt collectors are choosing now, seven years after the crash, to go after the debtors. Why? Because the lenders assume the debtors have already gone through a foreclosure, gotten a new job, paid off their old debts and maybe even bought a new house.

These debt collectors can do this because the lenders get a “deficiency judgement.” This deficiency judgement comes when the sale of the house isn’t enough to cover the full amount of the loan, plus penalties and other fees.

If this happens to you, please consult a bankruptcy attorney to get rid of that deficiency judgement debt.

By filing for bankruptcy, you can discharge your debt through a Chapter 7 or lump it into an affordable long-term repayment plan. Once the bankruptcy is filed, all creditor harassment must stop, including the freezing of bank accounts and wage garnishments.

It’s important to file bankruptcy before the wage garnishment begins, and it’s possible because there’s time in between the notice of the wage garnishment and when your wages will actually begin to be garnished. You can still stop the wage garnishments after they begin, but why go through that mess when you don’t have to?

Then, once the bankruptcy is complete, those debts are wiped away and you can continue rebuilding your credit score.

We like to help our clients rebuild their credit score after a bankruptcy by offering them free access to 7 Steps to a 720, our online credit restoration course. This course teaches clients the secrets and tips the banks don’t want them to know in regards to rebuilding their credit score after a bankruptcy.

If you’re considering filing for bankruptcy, or if you have any questions, you can schedule a free consultation with an experienced attorney by calling (901) 327-2100. You can also fill out one of the contact forms on this page to have someone contact you.

Darrell Castle & Associates has received multiple Client Distinction Awards from Martindale-Hubbel for client satisfaction, so I can assure you that you’re in good hands here.