QUESTION

What will happen if I abandon my house after filing Chapter 7 several years ago?

Asked on Jul 03rd, 2012 on Bankruptcy - Kansas
More details to this question:
I filed Chapter 7 Bankruptcy back in 2007. My house is exempt under Schedule C, but listed under Schedule D. I want to abandon my home, but I don''t want the bank to come after me for deficiency judgment. Am I protected against this? I''ve also considered renting my home - can I do that if it''s under bankruptcy?
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1 ANSWER

Bankruptcy Attorney serving Burbank, CA
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If you did not enter into and timely file a reaffirmation agreement for the mortgages on your home, and you did not subsequently refinance, then you can "walk away" from the home and owe no further obligations on it after it is sold at foreclosure.   Beware, however, that you ARE responsible for any liability that accrues to the property until it is sold, for example if someone slips and falls on your property.   Thus, it is important to maintain adequate insurance until title transfers. As far as renting out your home, you can do whatever you want as long as it doesn't violate state law or the terms of your Promissory Note and Deed(s) of Trust.   You asked if you can do that if it's "under bankruptcy".   Is your Chapter 7 case still open for some reason?  If so, then you need Trustee approval to do anything unless the Trustee has officially abandoned the property to you, but I suspect you are confusing something here.  It would be unlikely for a Chapter 7 case to be open that long. Mark J. Markus, Attorney at LawCertified Bankruptcy Law Specialist--State Bar of California Board of Legal SpecializationHandling exclusively bankruptcy law cases in California since 1991.http://www.bklaw.com/bankruptcy blog: http://www.bklaw.com/bankruptcy-blog/Follow Me on Twitter:  @bklawr  
Answered on Jul 05th, 2012 at 2:32 PM

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