Legal Question in Real Estate Law in Illinois

I would find it unusual for the property taxes to be an issue for you personally. The property tax process usually involves the taxes being sold to an investor (in other words the county is paid). The investor can later acquire the property if the taxes, costs and interest are not "redeemed" by an interested party. Neither the taxes, nor the sale process would result in a lawsuit for the amount owed, but for the court to issue a tax deed (losing the property, which you are expecting one way or the other anyway). I would expect that the mortgage company would step in to protect its interest before the property is lost for taxes. Having to pay the taxes, however, may impact the mortgage company's decisions. So, if you are trying to stay as long as you can, you may want to weigh the cost of the taxes with the possible advantage.

The association fees can present an issue, so you are best advised to focus on those. If you do not pay the association, it can bring suit for the amount, attach a lien or seek possession of your unit. So, for the time being, if you are living without a mortgage or property tax payment, keeping the association paid is probably advised.

Ultimately, it can all come back to you through the total amount owed the mortgage company. When they foreclose, they would show any property taxes advanced as part of the balance owed. After the foreclosure sale, a judgment can be entered against you for any shortfall. It is that judgment, for the deficiency, that generally forces a bankruptcy.

The scope of this space does not afford an opportunity to assess the situation and advise you. Getting some advice on an eventual bankruptcy is probably in your interest. I recommend you assemble for legal consultation: (1) your income information for September 2013 through the present, including wages and unemployment during that period; (2) all your bills (copies neatly assembled, back pages included); (3) last two 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.