Question: CAN FILING BANKRUPTCY PROTECT YOU FROM A DEFICIENCY JUDGMENT?
Answer: -YES… for most people who go through a hardship like foreclosure, the main reason they file bankruptcy is because a judgment was filed against them. And since they are not in a position to pay off their mortgage amounts, bankruptcy was their only option unless they wanted their wages garnished. Bankruptcy can protect you from a deficiency judgment and that deficient mortgage amount would be included in the bankruptcy.
On a side note, most people do wait to file bankruptcy until after foreclosure because lenders don’t necessarily have to file a judgment against the homeowner. They can issue a 1099 which means the mortgage amount they forgave is considered as taxable income and they give up their rights to come after you for the deficient amount. I would recommend you seek counsel from a professional bankruptcy attorney so you know all your options. Good Luck