QUESTION
What can I do regarding public fines after bankruptcy?
Asked on May 11th, 2011 on Bankruptcy - California
More details to this question:
I filed bankruptcy with a statement of intent to abandon my home. The final decree was issued more than a year ago. My municipal sewer utility and my county water agency both have 'no-termination' policies and base their billing on the name on the deed at the county recorders office. The bills keep coming to my P.O. Box and I can't make them understand that I don't own the property. Further, the house was red tagged by the code compliance office and they issued a fine and levied administrative fees totalling $2,600. Since the bank has not foreclosed or taken any other action, my name remains on the deed so they sent the bill to me. I was not in arrears with the utilities when I filed bankruptcy on the utility bills so they are not among the listed creditors and are unaffected by the automatic stay. How can I convince these people that it is not my house?
9 ANSWERS
Family Law Attorney serving Bellevue, WA
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Dearbonn Law Offices PLLC
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You must pay public fines, you cannot discharge them.
Answered on May 17th, 2011 at 10:27 AM
I can't tell from your question if you in fact own the home. Filling in your Statement of Intention form in bankruptcy does not transfer title of the property to the bank. I recommend that you contact the utility providers and ask that they disconnect service. 11 U.S.C. Section 523 provides in pertinent part that fines to governmental agencies are not dischargeable (can not be wiped out).
Answered on May 17th, 2011 at 9:07 AM
Trusts & Estates Attorney serving Camarillo, CA
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Law Offices of Larry Webb
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It is your house. A statement of intent does not transfer the title on real property. It sounds like you are still the owner of record and post-bankruptcy charges are not dischargeable. There are many reasons banks don't rush into foreclosure, one reason is to avoid liability for what you have described.
Answered on May 16th, 2011 at 11:24 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Fines and civil penalties are not discharged in bankruptcy. For instance, when a governmental agency issues a fine for property that you intend to surrender, the fine is owed if incurred before foreclosure.
Answered on May 13th, 2011 at 12:21 PM
Here's the problem - until your name is off of that title, it IS your house. And as such, you are responsible for those post-petition debts. Try calling the lender and doing a deed-in-lieu of foreclosure, or a short sale. Anything to get that property out of your name.
Answered on May 13th, 2011 at 12:19 PM
Spencer Hale
Unfortunately, if the bank has not foreclosed on the house, you still own the home. This makes you responsible for the bills that come due associated with the ownership of the home.
Answered on May 13th, 2011 at 10:08 AM
If the foreclosure hasn't yet happened, then the house is still legally yours until deeded to the bank via the foreclosure and you are responsible for all utilities and code violations post-discharge to the date that the foreclosure if finalized - it does not matter that you surrendered the house in bankruptcy or that you no longer live in it.
Answered on May 13th, 2011 at 9:54 AM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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That is a problem plaguing many people who filed for bankruptcy protection. It is somewhat unanticipated that the banks would not foreclose right away, but banks are very shrewd - though some are not, such as Deutsche Bank who is the subject of a lawsuit as a slum-lord because it foreclosed on many properties, which are now in disrepair, etc. Many bankruptcy attorneys are trying to find a good solution to your problem. One solution being explored is to quitclaim the property to the bank, which would remove you from title. You also could transfer title to another entity. While either or both of these solutions may solve your problem, please note that neither of these two solutions has been thoroughly vetted and no attorney-client relationship is intended or formed by this communication.
Answered on May 12th, 2011 at 12:19 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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No matter what you declared to be your intent in the bankruptcy petition, it is still your house and you do owe the bills for services after your filed bankruptcy. Once the bank forecloses they will probably pay everything owed so that they can sell the house free and clear of liens so eventually the bank may pay your bills. In the meantime, those bills are yours and you also need to keep the property insured and secured because you could be held liable for injuries and damages. You can't file for bankruptcy for 8 years so be careful.
Answered on May 12th, 2011 at 12:19 PM