Legal Question in Bankruptcy in Illinois

It will not prevent you from filing bankruptcy. It may disrupt your timetable since filing bankruptcy will often result in any pending negotiation with your lender being terminated. So, you would want to be cautious in determining your best course.

That said, if you file bankruptcy, unless there is a compelling reason to complete a short sale, perhaps to help a non-bankrupt co-debtor, you may not have any reason to continue the short sale process. You would no longer have responsibility for the mortgage, although other continuing expenses should be considered (association fees, if any, insurance, abiding by ordinances to mow/plow, . . .). Your fresh start may be better served just moving on. You can consider the various scenarios more thoroughly working with counsel.

The scope of this space does not afford an opportunity to assess the situation and advise you. I recommend you assemble for legal consultation: (1) your income information for May 2011 through the present, including wages and unemployment during that period; (2) all your bills (three months� copies neatly assembled); (3) last four years� tax returns; (4) a credit report (use www.annualcreditreport.com to obtain free report if not requested in last year); and (5) other information that may apply, such as copies of lawsuits. Call at your earliest convenience to afford the most opportunity in which to be advised about your best course. You are not required to use an attorney in your area.

I do not recommend filing bankruptcy on your own. There are too many complex issues. I have seen several posts on this site for debtors who filed on their own and are seeking counsel concerning complications. Most of them will have a hard time finding an attorney to get involved to unwind the mess without the attorney charging several times what would originally have been paid.