Can I turn over my rental property to the bank while in Ch 13?

[dave1512]

I filed Ch13 about a year ago. The plan was not 100% pay back.

I have a 3 unit rental property that I may not have tenants for all units come June 1st. I will not be able to pay the mortage with out the rental income. I also received my assesment from the city and this puts me under water on what I owe by 65k. The unit also needs a lot of repair and the city puts fines on me every month.

I have about 10k that is part of my BK plan that is tied to this property (missed payments). I owe 375k on this property.

What are my options? Can I just send the keys to the bank and walk away? How would this effect me while in Ch 13?

Andy advise would be greatly appreciated.

Dave

[StartingOver08]

It seems to me as if you are going to have to file a change in your Ch 13 plan - since you will not have the rental funds from the property, it makes sense that you would want to surrender this upside down property in your BK.

I don't know your entire situation, but you need to contact your attorney to modify your plan to reflect the reduced income and the property surrender. JMO