Asked in Debt and BankruptcyDebt CollectionBankruptcy LawForeclosure
I have heard that if you abandoned your property and you go foreclosure and file chapter 13 then you won't owe anything. Is it that true?
November 02, 2007 4:01PM
While I can't address the likely result of all the actions your speaking of, (generally Chap 13 is a budget plan requring payments), I would suggest: Abandoning a property does no one any good. The bank incurs more costs it will look to you to reimburse...the property deteriorates, so less is gotten for it and again...you are expected to pay...courts/creditors generally do not look favorably upon someone acting irresponsibly and just walking away leaving their mess as someone elses.... You may be better off contacting the lender and trying to arrange giving them the property back more amicably - sometimes called a "deed in lieu of foreclosure" - where you co-operate in turning over the property and they agree to not hold you responsible for the deficit, or at least not hold you responsible for the costs and losts they may incur in the 6 mos or year (or more) it would take for them to foreclose.