Question: If I declare bankruptcy now with regard to my other debts, will it prevent the short sale from going through?
Answer: -Yes, for only a short period of time. Eventually it will foreclose. Bankruptcy only postpones an auction or short sale which buys you more time. In fact, many short sale investors will use bankruptcy as an option if they need to buy more time so it doesn’t go to auction, as long as it’s in the best interest of the homeowner.