Chapter 13 Trustee Won't Let Cousin Surrender Property!

[swamprnr]

Hello all,

I recently received a discharge under Chapter 13. Now my cousin in Ocala, Florida is in the process. She owns free and clear a 1/4 acre vacant lot in a yet to be developed subdivision. She purchased it during the boom. There are over 75 other vacant lots in the subdivision and her lot is worth far less than she paid.

She wants to surrender it to the Chapter 13 trustee but the trustee told her attorney that she cannot surrender free and clear property to a trustee. The trustee said something about the code not allowing Chapter 13 trustees to do that. The trustee said it would be a different story if there was a secured creditor attached to the land.

Does this sound correct, or is the trustee just trying to avoid having the lot surrendered because the trustee does not want to deal with selling it. Frankly, that's why my cousin wants to surrender it.

Thanks ahead of time for any advice.

[MSbklawyer]

Gosh, I've never heard of that. Somebody is going to have to show me that code section. But if the trustee is going to force her to keep it, seems like she could sell it for something. A hundred dollars even.

Where at in Florida? Hell, I've been considering buying some property. Would she take $100 for it?

[justbroke]

I've never heard of such either, but technically, I don't think you can surrender property to the Trustee. It's already property of the Estate... so to speak.

If the Cousin doesn't want it, they just have their attorney petition the Court to sell the property free and clear of liens. Then the Trustee may want a piece of that money... who knows.

I'm thinking that the Trustee doesn't want to deal with it. This is precisely why most (smart) Trustees avoid timeshares at all costs! (Literally to avoid the cost of dealing with them!)

[rrockinggramma]

obviously the vacant land isn't worth a hoot. Let your cousin hang on to it and eventually 10 years from now it will be worth some money

[MSbklawyer]

obviously the vacant land isn't worth a hoot. Let your cousin hang on to it and eventually 10 years from now it will be worth some money

Too true. Once upon a time there was some swampy, snake-infested land that wasn't worth a hoot along about where Miami Beach sits now.

[justbroke]

Too true. Once upon a time there was some swampy, snake-infested land that wasn't worth a hoot along about where Miami Beach sits now.