Legal Question in Credit and Debt Law in Illinois

We are currently $40,000 behind on our mortgage, late fees legal fees and taxes because of an injury I sustained at work in April of 2010. Our house is in foreclosure because I have not been able to work and I will most likely recieve a workmans comp settlement around $200,000 after we lose our home. Will I lose my home AND my settlement? If so what can I do to prevent this from happening?

Asked on 2/24/12, 8:44 pm

Sanford M. Martin Sanford M. Martin, P.A.

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You can separate the two issues and avoid having the foreclosure affect

the settlement. Avoid any notice of deficiency in resolving the foreclosure

matter. Investigate the use of a short sale, deed in lieu, or negotiation to

resolve the foreclosure. Regardless, if necessary you can use bankruptcy

to discharge the mortgage and other debts unless your conditions

do not permit bankruptcy. A worker's comp settlement should be

exempt from being taken to satisfy the foreclosure.

Answered on 2/25/12, 4:31 am

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