Tried modification on fha loan. They gave me unattainable modification then said they would not do it again because 1 year had not passed. Accepted terms for deed in lieu. After 3 mos. I received notice I was unqualified. If I file bankruptcy, am I still liable for home loan and how will bankruptcy or foreclosure affect my student aide?
The prior attorney's answer is correct. You can discharge any remaining liability through bankruptcy. Just be careful not to try to do the bankruptcy yourself or with just a paralegal service. Hire a lawyer, because bankruptcy may fix one problem only to cause another.
Bankruptcy will discharge any liability for a deficiency on your home mortgage. Neither should affect your ability to receive any form of student loan benefits.