In our bankrupcy we had to give up the house. The bank has re-sold the property
Does this amount come off what we owed on the house or do we still owe the whole amount. Our trustee is so much in a hurray no proper explainations were ever given when asked.

Here is an answer from the Latest Questions section of this website:

As long as you have initiated the forclosure process prior to filing the bankruptcy the shortfall will be included within the bankruptcy. But you have to be careful of timing. If you file for bankruptcy and the forclosure is not initiated until 6 months after the bankruptcy then the shortfall likely won’t be captured.

The key is when the default occurs, so to be sure you can capture the shortfall you need to contact your bank via phone. Inform them that you are unable to retain the hosue and that they need to stop taking payments out of your account and begin the forclosure process. In addition I recommend you get the name and fax number for the person you spoke with and send them a letter the same day re-stating those exact same things. Then fax the bank the letter, keeping a copy for yourself and the confirmation slip you receive.

This extra step is just for added protection, but once you have done this, this becomes the date of default on the mortgage and you should be fine to file the bankruptcy