If you find yourself facing a foreclosure on your home, you probably have a lot of questions about what to do next. For instance, will it help or hurt your overall cause to declare bankruptcy as well? In just about any case, the first thing you will want to do is to get some legal help - in the form of either a bankruptcy attorney or one who specializes in real estate law. Among other things, an attorney can help determine whether you are susceptible to a deficiency judgment, wherein you the borrower might find that you are on the hook for any money that is required to pay the mortgage note in full, plus outstanding late charges and foreclosure fees, after the foreclosure sale.

The probability of having a deficiency judgment filed against you varies from state to state and from lender to lender. There are several states that do not allow lenders to pursue a deficiency judgment (these states are sometimes called "walk away" states), and in many cases, even in states that do allow for these types of judgments, lenders have not been pursuing them for various reasons.

A bankruptcy lawyer can help you determine whether your state is a "recourse" or a "non-recourse" state, meaning whether deficiency judgments are allowed or not, and what all the specific laws and statutes are in your state. The type of loan in question (original mortgage, a refinance, or line of credit) is also a factor in the filing of a judgment and legal counsel can help you address this.

If you find that you do live in a recourse state where deficiency judgments are allowed, and you feel that there is a strong possibility that your bank will file against you, a bankruptcy lawyer can help you determine whether or not it is in your best interests to declare bankruptcy. In most cases, declaring bankruptcy is an option that can help protect you from the judgment ever being filed, and even if it has already been filed, can help it be discharged during the bankruptcy process.

Whatever your situation is, it almost goes without saying that your best option is to find yourself a quality attorney as soon as you realize you may be facing foreclosure. Though there may be some expense attached, you could also save yourself tens of thousands of dollars simply by knowing what your options are, and by making well-informed choices.