Mortgage/Foreclosure
If I am bankrupt and my property is foreclosed, and in the sale of the property the creditor is not able to recover the full amount owed; Do I still owe them the difference after bankruptcy even though , or is that also discharged?
This comes down to the act of default and when it happend in relation to the date of bankruptcy. If prior to bankruptcy you ceased making all payments on the mortgage and notified the mortgage company they will have to foreclose, the the shortfall would be cleared.
Timing is the key! For example if you file for bankruptcy prior to notifying the mortgage company of your intention to quit the premises, or make any payments on the mortgage after the day you file for bankruptcy, then the shortfall is not a debt that can be cleared by the bankruptcy.
For more information on how this operates you should discuss this with a local trustee.