Webster Crossing, NY Bankruptcy Law Firms & Lawyers

Yes, the bankruptcy will protect you. A secured creditor is still entitled to get its security back, however. The bankruptcy does not eliminate the lien. It does eliminate your personal liability on the debt. Thus they will only be able to get the property back. If you owe more than the property is worth, that excess has been discharged in bankruptcy. So they cannot garnish your wages, etc. If you do not sign a deed in lieu of foreclosure, the creditor will have to go to the expense of foreclosing on the mortgage to get the property back. If you do sign the deed in lieu, you will save the lender time and money. In either case you will not owe more. One exception for real estate is homeowner's association fees. Since those generally occur on a monthly basis, each month is a new bill. So every bill for condo fees or homeowner's association dues that occurs after you filed your bankruptcy is not covered by your bankruptcy discharge. It is a post petition debt. In most cases the person who gets the property back will end up paying the condo fees to clear up the debt in order to sell the property. The condo association or homeowner's association may not be willing to wait that long. If that happens, they may sue you and your bankruptcy won't stop it.

The fact that you listed your intention to "surrender" does not alter the fact that you are still the titled owner of the vehicle, which carries with it some good and bad. As the owner you can still use the vehicle, providing that you keep it insured, with the auto lender's name listed on the policy as loss payee. However, if it is just sitting in the driveway, with the plates off and not being used by anyone, this can sometimes cause a problem with your local municipality, who may view it as an eyesore and issue you a ticket. Unfortunately, I know of no way to force an irresponsible finance company to repo the vehicle in a timely manner. If you still really want the vehicle but cannot afford the payments, since it seems that the lender does not have any great interest in it, maybe you can offer them a nominal, lump sum payment in exchange for them providing you with a release of lien. Try asking, all they can do is say "no". In any event, keep after them via regular telephonic and written communications, as I am sure that this last piece of the puzzle is preventing from being able to truly put the bankruptcy experience behind you.

Yes, you can sell your house if you want to. The fact that you very wisely did not sign a reaffirmation agreement on your mortgage thereby putting yourself right back on the hook for personal liability on that very large debt doesn't mean you aren't allowed to sell it. The mortgage company still has their lien on the house so they'll need to be paid off as part of the sales process, just the same as in all house sales. On the other hand, you do not HAVE to sell the house. Because you did not sign a reaffirmation agreement and renew your personal liability, you could simply walk away at this point rather than going through all the trouble of listing it and selling it. I guess it just depends on whether you'd actually make any money by selling it.