QUESTION
My property was discharged in Chapter 7 bankruptcy am I still responsible for property insurance?
Asked on Oct 13th, 2012 on Bankruptcy - Florida
More details to this question:
I filed bankruptcy in 2009 and have purchased another home I submitted my keys to Green Tree because I could not afford the mortgage payment and I am still receiving letters from them.
8 ANSWERS
Contact your bankruptcy attorney. He may need to get involved. You no longer have an ownership interest in the home so they should not be contacting you about insuring the property.
Answered on Oct 16th, 2012 at 8:23 PM
2 Awards
If you're still title owner on the property, you are still liable for any damage to a third party as a result of the property-for example a slip and fall. However, for general property loss the bank normally insures the property at its own cost since it is the one that would ultimately lose out should the property burn down or be damaged in some other way. You are not required to carry property damage insurance.
Answered on Oct 15th, 2012 at 4:59 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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You should keep insurance on the house until the title transfers.
Answered on Oct 15th, 2012 at 1:51 PM
You are not responsible for the insurance. However, you are still responsible if there is an injury on your property because you still own it. Even if no-one is living there, my advice to you is to keep insurance on the property to protect yourself from claims. Unfortunately, Green Tree cannot be forced to complete the foreclosure and, until they do, you are still responsible if someone is injured on your property. H
Answered on Oct 15th, 2012 at 1:50 PM
You are not responsible on the old mortgage if you included the mortgage on the bankruptcy schedule. You are responsible for a mortgage not reported in the bankruptcy petition.
Answered on Oct 15th, 2012 at 1:46 PM
You are still responsible for providing for & paying for home owners insurance as long as your name is on the title to the property. As many lenders are slow to proceed with foreclosures, particularly after a bankruptcy, you may wish to consider whether you can get your name off of the title to the property through a short sale.
Answered on Oct 15th, 2012 at 1:46 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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The debt, not the property, was discharged. If you keep the property, you have to pay to stay there, property taxes and insurance are part of what must be paid. If you have let the property be foreclosed upon, you no longer own it.
Answered on Oct 15th, 2012 at 1:45 PM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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If the home purchase was made after the discharge, then that previous bankruptcy has nothing to do with the action this creditor is taking. You will continue to receive letters until Green Tree forecloses or allows you to conduct a short sale or convey to them via a deed-in-lieu of foreclosure.
Answered on Oct 15th, 2012 at 1:45 PM