Posted on: 26th May, 2011 12:22 am
If a borrower files for bankruptcy, does it create problems for the lender ?
It may create problems for the lender. If the borrower gets a discharge from the debts, then the lender won't be able to come after the borrower personally in order to recover the debts. The lender may only foreclose the property in order to recover his debts. But in most cases, he won't be able to recover the full amount.
Thanks..