walking away from home

[shelly66]

We filed our chapter 13 in July and our 1st meeting with the trustee is Sept 10th. We had our house appraised we owe $250,000 and it came back at $100,000. We couldn't believe it especially since we spent over $50,000 in upgrades. Anyway we were going to keep the house but I tried for over a year to get a fixed rate and of course no luck. Now they have been notified that we are giving up the house and their lawyer keeps sending me papers stating we owe the arearages as a secured debt. I am confused can they come after us for the arearages or is it wiped out on the bankruptcy? Also I don't know how long we have to live in the house. Do we have until dec till the creditors have their final objections. We haven't found another place yet. This is all very confusing. I have to talk to my attorney.

[lrprn]

Now they have been notified that we are giving up the house and their lawyer keeps sending me papers stating we owe the arearages as a secured debt.

Who notified your mortgage lender you are surrendering the house? Your lawyer? The court? You?

Did you sign a reaffirmation agreement with the mortgage lender after you filed?

I am confused can they come after us for the arearages or is it wiped out on the bankruptcy?

If you did *NOT* sign a reaffirmation agreement, then no, they can't come after you for what's left on the loan. However, depending on the bk court district you are in, if surrendering your house means you cannot count the monthly payment in your Means Test and Schedules figures, it's possible that your trustee may file to amend your plan since now you have more disposable income. You need to talk with your lawyer about this.

Also I don't know how long we have to live in the house. Do we have until dec till the creditors have their final objections. We haven't found another place yet.

How long you can stay in the house depends on which state you live in. Foreclosure laws vary from state to state. Which state do you live in?

This is all very confusing. I have to talk to my attorney.

This is why you have an attorney. Contact him/her immediately to discuss the options available to you if you need to give up your house. Don't do anything else until you talk with him/her and get answers to all your questions.

[shelly66]

My lawyer notified them. I am in Florida. My lawyer said we can put rent in our plan. I did not sign anything with the mortgage company after we filed.