If a lender has obtained a deficiency judgment against me prior to the date I filed bankruptcy will that judgment be discharged?

A deficiency judgment against a debtor prior to the date of filing bankruptcy will be discharged if the bankruptcy petition is successful.  The discharge applies to all debts that the debtor incurred prior to the date of filing regardless of what collection stage the creditor maybe in when trying to get the debt paid. This includes deficiency judgment on mortgages.  The purpose of the bankruptcy petition is to give the debtor relief from the collection process and to give the debtor a fresh start.

The fresh start can be particularly useful to buy a debtor time to relocate if they are facing  the loss of a home and need time to find another place to live and relocate.  For instance if the debtor is facing a sheriff sale a bankruptcy filed just before the sale commences will halt the sale, forcing the creditor to apply to the bankruptcy court to lift the automatic stay before a sheriff sale can occur.  This process could buy the debtor three to six months or more before they have to leave their home.

In order to get the most benefit from the discharge, a debtor has to be diligent and make sure to list all outstanding debts owed prior to the date of filing the bankruptcy petition.  The best method of making sure to get all the benefits of bankruptcy protection is to seek competent legal counsel experienced in bankruptcy law.