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Christine vondemBach

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Thursday, October 30, 2008

Short sale before foreclsoure where sellers ask if they should file bankruptcy

What advice do you have for someone who wants to file bankruptcy because of a foreclosure? I would recommend that they talk to their tax advisor first. The reason being that they may not have much by way of additional debt such as credit cards, etc. and sometimes filing bankruptcy can create more damage to their credit than a short sale. Each situation is different and carries its own set of entanglements. We are not bankruptcy attorneys or tax advisors but always caution consumers to get the best professional advice possible before making a decision of that nature.