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I lost two houses, one my home to foreclosue they v alues dropped so fast I could not sell and access my equities..long story sh

Warner Robins, GA |

short I lost everything. I moved back to georgia and this home is two payments behind.
I received a deficiency final judgment for the plaintiff from a bank that I had a loan against a beach front lot, which I could not sell. One of the lenders sent me a form for IRS as income for difference. One have not heard anything. Now the lot has come up.
I understand the only way to get rid of this judgment is to file bankrupsy. However, that means they can take everything I own if I understand right ..we may have l00k equity in this house but understand we would have to give to them. Please advise...I hate bankrupsy...but don't know what else to do...thanks

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Filed under: Bankruptcy Lien Tax law
Attorney answers 3


Sorry to hear about your situation. I have heard many similar stories in recent years. Unfortunately, your situation has too many moving parts to answer on an anonymous Q&A board. Look for a local bankruptcy attorney in Warner Robbins and ask for a free consultation.

In an attempt to give you a little info--you say we, so I assume you are married. If so, you are allowed to exempt $20,000 in real property. If you have a mortgage on your home, there is a very good chance that the trustee would not go after your primary home, even with the equity. A local bankruptcy attorney can assess your situation and help you make a decision on whether or not to proceed.

Best of luck!


A bankruptcy is the only way to erase a defiency like that. Be aware that if they domesticate that judgment it becomes a lien on your home.

The other attorney gave some bad advice because he missed a line of your post. Since you moved from another state, your bankruptcy exemptions may be different than Georgia's. Depending on which state, that may help you keep your property.

Have a local attorney look over your situation and numbers.

Robert Douglas Lenhardt

Robert Douglas Lenhardt


Yes, clearly Glen's advice of "have a local attorney look over your situation and numbers" is far superior to my advice of "a local bankruptcy attorney can assess your situation and help you make a decision on whether or not to proceed." Regardless of when or where you moved from, there will be exemptions on which a local attorney can advise you.

Glen Edward Ashman

Glen Edward Ashman


The part of Robert's comment that I was focused on concerned his statement on exemptions. Since you say you recently moved to Georgia, you would likely be ineliligble for Georgia's homstead exemption. That could be good news if you actually do have 100K in equity, as some states are more generous than Georgia. If you can use the exemption from another state (or the federal ones, depending on which state law applies) you may be able to protect a larger part of your equity, which makes a difference. We both agree on the consult a local attorney part. We disagree on what property you likely can exempt. That answer will depend on how long you live in which states.


Most bankruptcy attorneys will offer a free consultation. You should definitely take advantage of this and meet with a local attorney that specializes in bankruptcy.

No attorney client relationship exists unless we have a written contract. Nothing in this post should be interpreted as legal advice.

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