When Do I Surrender My House In Bankruptcy?

Bankruptcy Client: “I want to surrender my home in my bankruptcy. When do I have to move out?

Kallen Profile Pic 1-1Candace Kallen, Attorney at The My AZ Lawyers:
Well, you want to make arrangements to move out as soon as possible so that you can transition into your new home, but they can’t force you to move out until they file a motion for relief of stay and proceed with a foreclosure, or if you agree to a short sale, or a deed in lieu of foreclosure. And you want to be careful with homes because there’s a lot of liabilities that can incur after bankruptcy. Any liabilities on your home that are incurred after the date of filing your bankruptcy are still going to be your responsibility. For example, HOA fees, property taxes, any sort of personal liability for activities that the home might be on, if somebody gets injured or if there’s a fire. So you want to get that home transferred into the bank’s name as soon as possible so that it’s a clean break and you don’t incur more debt after you’ve already discharged any other debts.”

2018-06-16T21:48:04+00:00March 4th, 2013|Mortgage|

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