notice of proposed abandonment

[saks81]

i just got a notice in my mailbox today saying there is an intent to abandon a property i cosigned for as a help for a freind who was really in a tight situation, i am so worried as my reason for filing the bk in the first place was to get the home off my name since i am stuck with it... does this mean this will stay on my crdit, my lawyer is on vacation and i have no one to run to for clarification

[despritfreya]

A Notice of Intent to Abandon is filed by the Trustee once he has determined that the asset has no value to the bk estate. Once abandoned, the ownership interest in the asset is returned to the debtor to do with as the debtor pleases.

While the asset is returned, any debt associated with it (except going forward HOA dues if applicable) is still discharged unless a reaffirmation agreement is signed. The lien against the asset passes through the bk therefore the lien holder will continue to have the right to foreclose if payments are not made.

As to the credit report, I will leave that response to someone who knows more than I.

[saks81]

Thanks for your insight... please help clarify I cosigned the loan on the house as a help to a friend, does the discharge mean only i will be relived of the obligation and my so called friend will be liable for the full balance on the mortgage

[despritfreya]

In response to:

"does the discharge mean only i will be relived of the obligation and my so called friend will be liable for the full balance on the mortgage"

You got it. You are no longer a "co signer". The $$ (all of it) is owed by the other party only.

[justbroke]

despritfreya is spot on and I love the detailed response! As for the credit reporting, it will still be on your credit report and marked as Included In Bankruptcy (IIB). You won't be responsible for the loan after the discharge.

[tcreegan]

credit report

Hi saks,

Be sure to pull your credit report after your case closes and make sure it is reported correctly. Included in Bk with a zero balance. If it isn't, write and pester them until they correct it.

Tom in Colo