Legal Question in Bankruptcy in North Carolina

When you filed Chapter 13, you were required to list the mortgage holder and the debt was discharged. You may have Reaffirmed the debt. If you did, then you made a new promise to pay the entire debt. The circumstances, with that creditor, would be exactly the same as if you did not file the Chapter 13. When you secure an agreement from the lender for the short sale (all this means is that they agree to release the lien in exchange for all the proceeds of the sale) they will agree also to release you from the deficiency or not release you from the deficiency. If they release you , they may send in a 1099 which means that you may have to pay taxes on the forgiven amount. (if that happens, see an accountant, there are ways to avoid the tax liability) If they do not release the deficiency, they may collect the amount the same as any debt. They may agree to a payment schedule, and/or bring suit to try to attach wages etc. A Chapter 7 will discharge this debt. If filed before a short sale, it will eliminate the tax issue with or without the forgiveness. The courts (either bankruptcy or other) could not come after you for anything.