Legal Question in Bankruptcy in California

Besides the home that obviously has no equity, do you have other debts? If so, I think the bankruptcy would be in your best interests. Get rid of all the debt and get a fresh start.

Besides, if for some reason you still wanted to do a short-sale, you could always do so after the bankruptcy. I'm not sure why you would, because obviously with a short-sale, you're not going to see any proceeds, so the only person who makes out is your realtor. But if you wanted to, you could.

With regard to your credit, I'm not sure that is the most imporant factor to be considered. Some will say a short-sale is better than a foreclosure, which may be true, but I'm guessing your credit is already pretty much gone anyway. If that is the case, getting rid of your debt entirely would seem to be the most important/desirable. Hope that helps.

Todd Mannis, Esq.

Calabasas, California

Tel: (818) 591-9890

www.mannislaw.com

A short sale is less harmful to your credit as compared to bankruptcy.