What was your experince in surrendering a house in Ch 7?

[Demi]

We're about 90% sure that we'll be filing ch 7 here in the next couple of months. We plan on surrendering the house we currently have a mortage on. My question is how will that work? What was your experince in surrendering a house in Ch 7? Anything is helpful. I'm ready to deliver our 3rd child here in a few weeks and I don't want any surprises.

Thanks

[lrprn]

We're about 90% sure that we'll be filing ch 7 here in the next couple of months. We plan on surrendering the house we currently have a mortage on. My question is how will that work? What was your experince in surrendering a house in Ch 7? Anything is helpful.

The typical procedure is to declare that you intend to surrender your home when your Ch 7 is filed. Your lender then petitions the court to lift your automatic stay so they can foreclose on the home. How long the foreclosure process takes varies from state to state.

By the way, you don't have to leave the home immediately after filing or even after your bk case closes. Smart bk filers stay in the house rent-free saving up their money as the often-months-long process winds through the courts until the vacate order finally arrives. I imagine with a new baby, a little extra cash will come in handy as well.

I'm ready to deliver our 3rd child here in a few weeks and I don't want any surprises.

If you are close to the median income for your state, definitely consider *NOT* filing your Ch 7 until a month or two after the baby is born. This way he/she can count into your family size, any medical costs related to the baby will be known, and the baby's new expenses can be added to your Means Test (and if necessary, Schedules) to be sure you come in under the median so there's no doubt you qualify for a Ch 7.

Good luck with your new little bundle of joy!