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When should we cancel house insurance and turn off utilities?

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    #16
    Even though you are surrendering the property in BK, you are responsible for the property until it is out of your name. This includes fire, theft, vandalism, personal injury, etc.

    Since you have ALREADY FILED BK, any damages will be at your expense, you cannot add them to your BK.

    Most mortgage companies will file and take over the property immediately and most will start foreclosure.

    If not, then you better CYA because one fire, personal injury, etc. will put you right back where you were before you filed BK..... in deep debt and no way to file bankruptcy again.

    Check your mortgage papers and lien papers, they discuss bankruptcy and your obligations until they take over the property.

    WHATEVER-----Feel brave, cancel all your insurance....... cause that property is legally yours until the mortgage company takes possession of it either by "lifting the stay" or after your discharge.

    Just an ounce of caution to the wise!!!
    Minny

    "It's amazing the paths that our feet sometimes follow in life".

    My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.

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      #17
      So what happens to a refund that your insurance company sends back to the escrow account?? Does the bank keep it, can they buy insurance using these funds. This is after you file and the bank took posession of the house...changed locks and everything???

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