Legal Question in Bankruptcy in California

There are no deficiency judgments in California, at least not for a typical nonjudicial foreclosure on a family's primary residence. Bankruptcy will eliminate or decrease most judgments, and it will also stop a foreclosure.

Generally, a deficiency judgment is dischargeable in bankruptcy as long as there is no finding of fraud on the part of the party seeking the discharge. Deficiency judgements may be obtained only in certain circumstances. A deficiency judgment may not be obtained when a property in foreclosure is sold through a non-judicial public sale or if the foreclosure relates to a purchase money mortgage (in other words, the loan was used to buy the home and is not a refinance of an existing loan). Different rules apply to guarantors of such loans and may apply to junior mortgages such as HELOCS and other types of second or third loans. As always, review your situation with a competent attorney before making any final decisions.

Yes