Summoned after Chapter 7

[DiosaBell]

I surrendered my property in chapter 7 bankruptcy in mid 2009 and it was discharged in the same year. My bankruptcy lawyer said that I'm no longer responsible for anything that involves the house even I continue to receive water&sewer bills for it which I ignore. Fast forward to today, I received a summon from my mortgage company for past due payments on the house I already surrendered. What should I do? Please give me helpful advices on what I should do. Thanks in advance!

[newbie2]

The first thing I would do is pick up the phone and call the attorney who represented you in the bankruptcy. A couple of things could be going on here: The summons could be the formal foreclosure notice and procedure, or it could be that the lender is violating the bankruptcy laws and stupidly trying to collect money from you post discharge.

If in fact the summons is because the lender filed a lawsuit to collect back payments then you really do have a cause of action against the lender. Good luck to you.

[tobee43]

I surrendered my property in chapter 7 bankruptcy in mid 2009 and it was discharged in the same year. My bankruptcy lawyer said that I'm no longer responsible for anything that involves the house even I continue to receive water&sewer bills for it which I ignore. Fast forward to today, I received a summon from my mortgage company for past due payments on the house I already surrendered. What should I do? Please give me helpful advices on what I should do. Thanks in advance!

although you "surrendered" the property....and the property itself is the collateral.... the bank most likely hasn't foreclosed on it as yet. until the property is sold at a sheriff's the deed is still in your name...although you no longer have any financial responsibly for the property.

additionally.... i would immediately call the "water and sewer" co., and send them a copy of your discharge. the ONLY financial obligation associated with the house or whatever property it is, is the HOA dues and fees if applicable.

banks could make this process simple by just issuing warranty deeds and general releases...but they don't because all the "foreclosure" fees are packed on to the bottom line and the government just keeps paying out to the banks.

read the summons carefully....most likely it's either notification of their intent to file foreclosure and or already have and it's the notification. the summons will most likely have an answering time period...and i'm certain your atty will advise you, if it is the intent of foreclosure, simply not to answer the summons.

call your atty besides the summons let them know about the water and sewer bills...with the actual property situation, they most likely will advise you to sit back for the ride.

personally....we also surrendered our property....and have been out of it for over 2 years and still they are in the foreclosure process..i have attempted to get our names off the deeds to no avail on our house.

we had a second piece of property and that bank was more than happy to accept the warranty deed and general release. but most banks are just playing "hard" ball.

it's usually just a "waiting" game at this point.

[drowning123]

That's why I'm staying in the house as long as possible until they kick me out. If it hadn't been for this forum, I would have moved already in a panic. I haven't been discharged yet, so the question is, after discharge, I don't need to pay water and sewer and home owner's insurance?

[JSchrader]

Are you going to occupy the house after discharge? There is nothing stopping the water company from shutting off service (although they may wait a long time before doing so) if you don't make payments. Practically,I presume it's not possible for a sewage utility to shut off service. If your name is on the bill for these utilities, and you continue to use them, you would be responsible for making post-discharge payments. If you don't want these services, I would contact the utility company. You aren't responsible for payments that came due before discharge, however.

The discharge should terminate your contract with your insurance company. There is no reason for you to keep making homeowner's insurance, except that you may want to keep liability insurance. This is because you don't want to be without insurance if someone gets injured on your property and sues you. If you don't want to keep making payments, you should contact your insurance company to cancel your insurance premium.

[DiosaBell]

Are you going to occupy the house after discharge? There is nothing stopping the water company from shutting off service (although they may wait a long time before doing so) if you don't make payments. Practically,I presume it's not possible for a sewage utility to shut off service. If your name is on the bill for these utilities, and you continue to use them, you would be responsible for making post-discharge payments. If you don't want these services, I would contact the utility company. You aren't responsible for payments that came due before discharge, however.
There is no reason for you to keep making homeowner's insurance, except that you may want to keep liability insurance. This is because you don't want to be without insurance if someone gets injured on your property and sues you. If you don't want to keep making payments, you should contact your insurance company to cancel your insurance premium.

JSchrader, I have left my surrendered property almost two years ago. I have contacted and sent copies of my bankruptcy discharge, but the water and sewer company continues to send me monthly bills. I just can't afford to pay it...Anyway, thanks so much for your advice!

[DiosaBell]

although you "surrendered" the property....and the property itself is the collateral.... the bank most likely hasn't foreclosed on it as yet. until the property is sold at a sheriff's the deed is still in your name...although you no longer have any financial responsibly for the property.

additionally.... i would immediately call the "water and sewer" co., and send them a copy of your discharge. the ONLY financial obligation associated with the house or whatever property it is, is the HOA dues and fees if applicable.

banks could make this process simple by just issuing warranty deeds and general releases...but they don't because all the "foreclosure" fees are packed on to the bottom line and the government just keeps paying out to the banks.

read the summons carefully....most likely it's either notification of their intent to file foreclosure and or already have and it's the notification. the summons will most likely have an answering time period...and i'm certain your atty will advise you, if it is the intent of foreclosure, simply not to answer the summons.

call your atty besides the summons let them know about the water and sewer bills...with the actual property situation, they most likely will advise you to sit back for the ride.

personally....we also surrendered our property....and have been out of it for over 2 years and still they are in the foreclosure process..i have attempted to get our names off the deeds to no avail on our house.

we had a second piece of property and that bank was more than happy to accept the warranty deed and general release. but most banks are just playing "hard" ball.

it's usually just a "waiting" game at this point.

I truly appreciate your helpful advice, Tobee43 I thoroughly re-read the summon letter today, and it is my understanding that it's the mortgage company's intent to place foreclosure on my surrendered property. How should I respond to it? I have 35 days to answer and if I don't, I will have a judgment by default. I'm really scared and nervous as to what to do...Really appreciate your advice.

[drowning123]

Are you going to occupy the house after discharge? There is nothing stopping the water company from shutting off service (although they may wait a long time before doing so) if you don't make payments. Practically,I presume it's not possible for a sewage utility to shut off service. If your name is on the bill for these utilities, and you continue to use them, you would be responsible for making post-discharge payments. If you don't want these services, I would contact the utility company. You aren't responsible for payments that came due before discharge, however.

The discharge should terminate your contract with your insurance company. There is no reason for you to keep making homeowner's insurance, except that you may want to keep liability insurance. This is because you don't want to be without insurance if someone gets injured on your property and sues you. If you don't want to keep making payments, you should contact your insurance company to cancel your insurance premium.

I will be occupying the house, so I'll keep paying the utilities and insurance. Thanks, JS.

[tobee43]

I truly appreciate your helpful advice, Tobee43 I thoroughly re-read the summon letter today, and it is my understanding that it's the mortgage company's intent to place foreclosure on my surrendered property. How should I respond to it? I have 35 days to answer and if I don't, I will have a judgment by default. I'm really scared and nervous as to what to do...Really appreciate your advice.

i'm glad this may have been of some help to you.

now...in as much as how you should handle it...i cannot advise you what to do...i can just tell you our expereince. you really need to decide yourself.

since we were surrendering the house...if you read the summons carefully, it will tell you to answer it IF you want to fight the foreclosure.

you didn't mention if you're still living there. however, even if you are, you will get word prior to you having to leave...(before they literary throw you out in the streets).

we did NOT bother to answer the summons, simple, because we were not fighting to stay in the house, we had already vacated the premises.

DO NOT be scared...if the mortgage was listed on your chapter 7 and it was a no asset case...and discharged you are fine. it's just a process that have to go through to get reinburst by the govenment for on your loan and also to sell the property at auction.

they CANNOT get a judgement on something has already been discharged.

once again, i advise you to call the atty that handled your case...actually "speaking" to someone may relieve your mind...better than a bunch of typed words...

keep in touch and let us know how you make out with it