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Current Chapter 13 and want to surrender home. Is this possible?

Posted on: 13th Feb, 2011 09:32 pm
I've been in a chapter 13 for 6 months and have come to the realization I can no longer afford my mortgage payments. To make matters worse I am planning to file for divorce.

If my house needs substantial updating/remodeling will I still be able to surrender it? OR will the mortgage company require me to pay for the remodeling?

Is it even an option to surrender my house? Will I have to change to a chapter 7?

Thank you for any information/guidance you can provide.
Hi sayhygiene,

You can surrender the property without remodelling it. You should contact your bankruptcy trustee, attorney and the lender and inform them about the surrender of the property. In case, they don't allow you to surrender, then you can think about converting Chapter 13 into Chapter 7.

Thanks,

Jerry
Posted on: 14th Feb, 2011 01:55 am
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