QUESTION
Should I pay for forced place insurance if I already discharged the chapter 7 two years ago?
Asked on Feb 17th, 2013 on Bankruptcy - North Carolina
More details to this question:
I discharged my note obligation with chapter 7 two years ago. I still live in my house and the bank has not completed foreclosure. Now, I get a notice about the forced place insurance. Can the bank get me to pay for it? Wouldn't that defeat the purpose of the chapter 7 being discharge?
9 ANSWERS
Generally speaking, if the note obligation was discharged you no longer have any liability under it.
Answered on Feb 21st, 2013 at 7:11 PM
As long as title to property is in your name, you must carry insurance on it for your own good as well as to meet your legal requirement. The fact that the debt on the property has been discharged does not remove your from this responsibility which continues to accure after you filed bankruptcy. You still have to pay your property taxes too. You want to get out of the irresponsibility of having the house, then sell it! Bankruptcy only discharges debts up through the time you filed, you must pay debts you run up afterwards.
Answered on Feb 21st, 2013 at 7:01 PM
Richard hirsh
The bank cannot recover from you the cost of force-placed insurance because your obligation to pay them anything arises from the mortgage obligations which have been discharged, although they do have the right to foreclose. for your own protection you should have your own coverage since the lender insurance covers only their interest in the property and does not cover you or your personal assets or liabilities arising from the property.
Answered on Feb 21st, 2013 at 1:57 AM
General Practice Attorney serving Crystal Lake, IL
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Bruning & Associates, P.C.
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Your liability for the property, including any obligation to provide fire and casualty insurance, was discharged in the bankruptcy. It is likely that the notice regarding force-placed insurance means that the bank has bought insurance for the property. The notice enables you to purchase insurance from another vendor, if you desire to do so. Whether you should do so is a more difficult question and would require a sit-down consultation.
Answered on Feb 20th, 2013 at 1:22 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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I do not know where your property is located, so you should talk to an attorney in that state. In Arizona the answer is no. That said, make sure you have personal liability insurance on the property. That way if someone hurts themselves you are covered.
Answered on Feb 20th, 2013 at 1:22 PM
Deborah F. Bowinski
You have no obligation to pay for force placed insurance. You may wish to keep your own homeowners insurance in effect to protect your belongings and to protect yourself from injury or negligence claims while the property is still titled in your name.
Answered on Feb 20th, 2013 at 1:21 PM
Bankruptcy Attorney serving Atlanta, GA
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Saedi Law Group, LLC
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If you did not reaffirmation your mortgage loan in your Chapter 7 case then you have discharged your obligation to pay any fees from the lender associated with the loan. Check your notice to see if there is disclaimer language about bankruptcy. If not you need to contact your bankruptcy attorney.
Answered on Feb 20th, 2013 at 1:21 PM
You should contact your attorney to discuss this issue and how it affects your particular case. I would need a lot of additional information to soundly advise you.
Answered on Feb 20th, 2013 at 1:20 PM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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If you have no intention of keeping the home, you do not need not pay for the insurance. If you want to save the home, you should work quickly to prevent the foreclosure and ensure you have your own insurance, which would be better than force placed insurance.
Answered on Feb 20th, 2013 at 1:17 PM