If I walk away can the bank sue me?

Often, after a foreclosure auction, there will not be enough funds from the sale to pay the loan in full. In cases such as these, the bank may sue the borrower for the remaining balance (deficiency). Additionally, the bank will usually add interest, late penalties, and legal fees onto the balance. However, a Chapter 7 or Chapter 13 may be able to stop the bank from suing you and discharge the debt in full.