Home in GA is being foreclosed on in June

You certainly do not want to wait your home to be foreclosed to file for bankruptcy. There are several reasons but the most important of which is they will come after you for the remaining balance on the mortgage that is not received from the foreclosure sale. Or worse they will write off the remaining balance and send it to the IRS as income. The IRS considers this as a 1099 form of income. So if there is a difference of $100,000 between the sale price and the amount owed on the mortgage you may have to pay the IRS on that money as if you earned $100,000 in that year. Furthermore if you file prior to foreclosure that stops the foreclosure and you can continue to rent the property until it is actually foreclosed upon, and the tenants as long as they have a lease with you should be protected from being evicted by the new owners, depending on the laws of your state. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147 #bankruptcy  #lawyer  #FallRiver  #Chapter7  #chapter13  #debt  #debtsettlement  #foreclosure  #attorney   #cantpaybills  #lawsuit  #court  #bankruptcycourt  #eviction  #lostmyjob