What really happens when you surrender your house in Ch. 7?

[brtb]

Hi Everyone,

I've post on the Chapter 13 forum a lot. My husband and I are 2 1/2 years into a 5 year joint Ch. 13 plan. We're getting divorced. I've consulted a new bk atty and I might be able to convert to Ch. 7 myself and surrender my half of the house. I'm right on the border of the income line, though. Mortgage is current and being paid outside of the plan, but I'm in a situation where I just want to be out at this point. Out of the marriage, out of the bankruptcy, everything.

Anyway, for those of you who've been through it what really happens when you surrender your house to Ch. 7?

My main concern is that I've read that you still have to maintain the property, pay HOA fees, property taxes, etc until the bank forecloses and this could take months to years? I don't want to have anything to do with my husband; we don't even speak at this point so I can't imagine having to work with him on taking care of the house. I want to get my name off the deed as soon as possible if I go this route.

Secondly, honestly, how hard is it going to be for me to find a place to rent? The atty I consulted recommended staying in the house until the discharge and instead of paying the mortgage, save that money. Once I get the discharge go rent a place. Is it really as easy as that? Attorneys make everything sound like a breeze even though they're not living it.

Any additional advice you might have would be greatly appreciated.

Thanks in advance!

[justbroke]

Administrative note: I deleted this same exact thread in the Chapter 13 Forum Area. If no one is answering, it is because no one has anything to say. Please refrain from posting the same (or similar) question to multiple forum areas. If you were to get responses, it would dilute the responses and make it difficult to track.

I "surrendered" my home in my Chapter 7 and I still live in my home. I marked "stay and pay" which is a technical surrender since I did not "redeem, reaffirm or surrender" the home. There is no way to tell what would happen in your particular case with your particular lender given your particular desires. The key really is in your hands as to what you want the true disposition of the property to be upon discharge (or some time after discharge).

Everything that you've read about personal liability for post-filing HOA dues and that the (your) home is still legally yours (in title), then you have every legal responsibility and right of a lawful owner. Your intention of surrendering is just that, an intention only. It does not legally do anything to convey title to the property.

Your attorney provided you with excellent advice. There is not much more to say about that. It is your legal home and you can stay until someone else "legally" owns it.

In your particular case, I would listen to my attorney.

[brtb]

Ok, thank you.

[tobee43]

surrender in the legal sense when filing ONLY means you make the collateral available to the creditor. it doesn't necessarily mean because you surrendered it they want it or will move in the direction of just handing it back to them. the lender can frankly do what they choose. as jb states this does not legally do anything to convey title to the property. that will only happen when the property is sold and they title is exchanged.

we surrendered our property well over 5 years ago and nothing. no foreclosure, no DIL. no nothing. however that property is in a judicial state. virginia is generally known as a title theory state where the property title remains in trust. it usually approaches the non-judicial foreclosure process which would be a quicker turnabout than a judicial state procedure.