Hazel Crest Bankruptcy Lawyer & Filing Scenarios

Another scenario is when someone has lost his or her home to foreclosure.  They were unable to pay their current mortgage payment, and it went into foreclosure.  Eventually, they lost it to a Sheriff’s sale.  In many counties throughout the state of Illinois, the judges have the ability to order a deficiency judgment against the individual.  This is the amount that was not collected by the mortgage company in the foreclosure process.  This is the amount that the individual owes which was not paid at auction.

A deficiency judgment is an unsecured debt that can be eliminated in a chapter 7 bankruptcy provided the individual otherwise qualifies for chapter 7 bankruptcy relief.  So in the case of someone who has lost their home, they may be being sued for the deficiency balance.  If you add other debt on top of the deficiency balance, it becomes overwhelming. 

Thus, many people who have lost their home to foreclosure and have incurred a deficiency judgment against them, have availed themselves of chapter 7 bankruptcy protection to get a complete fresh start. 

This process from start to finish runs approximately 110 days.  The average cost for a chapter 7 bankruptcy case is $750.00 up to about $1,550.00.  The court costs for filing a chapter 7 bankruptcy is $299.00.  That $299.00 fee has to be paid to the clerk of the US Bankruptcy Court, and that is the same court cost that is had anywhere throughout the country since chapter 7 is bankruptcy, which is federal law.  So in any federal courthouse in the country, bankruptcy cases are filed under chapter 7, and the fee to file such a case is $299.00.

 Call David Siegel directly at (847) 520-8100.