I am involved in a short sale situation with my house and the lender wants me to sign a promissory note for the difference – will I be able to discharge this note in bankruptcy.
This is a common tactic by lenders in a short sale situation. However, if you sign the note then try to file for bankruptcy shortly thereafter, you may have a difficult time convincing the bankruptcy court to discharge the debt.
Other Creditor Harassment FAQs
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Will filing for bankruptcy stop collection efforts?
This answer depends upon the type of creditor that is after you. When filing for bankruptcy an “automatic stay” goes into effect. The automatic … more -
Can a creditor object to a debt being discharged?
Yes. A creditor may object to the discharge of a debt in Chapter 7 bankruptcies. The creditor has the burden to prove that the debt should not be discharged by … more -
What can I do if a creditor keeps trying to collect money after I have filed bankruptcy?
If a creditor continues to attempt to collect a debt after the bankruptcy is filed in violation of the automatic stay, you should immediately notify the creditor in … more
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