Legal Question in Bankruptcy in California

I am so frustrated by the conflicting information....

I filed Chapter 7 and surrendered my house. The bankruptcy has been discharged for almost a year but I am still living in the house.

WILL or WILL NOT a foreclosure show on my credit report when it happens if I surrended the property in a 7 and the thing has been discharged.

Asked on 6/09/11, 8:47 pm

1 Answer from Attorneys

Your question omits some important information such as what conflicting information you have found, but a few items to be aware of are:

--a foreclosure can occur after (or during with court approval) your bankruptcy case, but the creditor should not report an outstanding amount due after the foreclosure. A bankruptcy discharge includes the discharge of any deficiency--the difference between the property value and the amount owed to the secured creditor.

--assuming you are living in the house rent-free, what did you do to surrender it? Simply stating your intention to surrender in your bankruptcy papers is not the same as actually doing so. Consider contacting the mortgage holder to complete the process of surrendering the property.

Best of luck.

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Answered on 6/16/11, 4:40 pm

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