Comments on: Are There Tax Consequences if You Surrender Your Home in Bankruptcy? http://www.thebklawyer.com/thebkblog/2007/02/21/are-there-tax-consequences-if-you-surrender-your-home-in-bankruptcy/ Personal Bankruptcy tips and tricks moderated by Atlanta lawyer Jonathan Ginsberg Tue, 17 Jan 2012 01:57:46 +0000 hourly 1 By: Rob Mehrtenshttp://www.thebklawyer.com/thebkblog/2007/02/21/are-there-tax-consequences-if-you-surrender-your-home-in-bankruptcy/#comment-16584 Rob Mehrtens Thu, 01 Dec 2011 00:14:09 +0000 http://host.jonathanginsberg.com/~thebklaw/thebkblog/?p=114#comment-16584 Pamela: exactly the same here, even our lawyer was like what are they talking about. The Chap 7 went through fine, Surrendered the property, Discharged. Then we keep getting calls and I question the bank as to why, they say your name is still on the deed, we are exercising our rights to the property, etc, I say Go get it, its yours, don't let me stop you. They say its still ours. They start pushing us to do Deed in Lieu, saying if it goes to foreclosure it will be bad for tax purposes. Thats what got me here. Deed in Lieu is just as much work as the bankruptcy itself, hell no. It is for people in different situations who have not gone through bankruptcy, as far as I can see. Most importantly, after following the above link, I see it clearly stated that discharge or debt in bankruptcy has no tax implications. So, deed in lieu or regular foreclosure, it matters not for us, we just have the accountant file a form 982 to counter their form 1099C "income" claim. I am done talking to the bank, I will defer to our lawyer. Screw the bank, we lost $80000 on this and "rented" for $2000 a month with absolutely nothing to show, they can choke on that house. This is the game they are playing now .... if it were worth more than we owe, it would have been long since sold. Deed in lieu must be a much better deal for the bank somehow, but I dont care. Bottom line, our names will remain on the deed "technically" until they go do something with it, and that could be years, literally. So what, any maintenance of the property must either be done by the bank or for instance if the county moves in and mows the lawn, they will slap a lien on the deed, which will transfer to the next owner (the bank, you would think, but surely they will leave it sit there until a new buyer comes in, then they will have to deal with it or negotiate with the bank). Technically we the "owners" will get notices of such maintenance, but I don't care what anybody says, the bank knows damn well its their house now, but its not worth it to them to do anything yet.... Pamela: exactly the same here, even our lawyer was like what are they talking about. The Chap 7 went through fine, Surrendered the property, Discharged. Then we keep getting calls and I question the bank as to why, they say your name is still on the deed, we are exercising our rights to the property, etc, I say Go get it, its yours, don’t let me stop you. They say its still ours. They start pushing us to do Deed in Lieu, saying if it goes to foreclosure it will be bad for tax purposes. Thats what got me here. Deed in Lieu is just as much work as the bankruptcy itself, hell no. It is for people in different situations who have not gone through bankruptcy, as far as I can see. Most importantly, after following the above link, I see it clearly stated that discharge or debt in bankruptcy has no tax implications. So, deed in lieu or regular foreclosure, it matters not for us, we just have the accountant file a form 982 to counter their form 1099C “income” claim. I am done talking to the bank, I will defer to our lawyer. Screw the bank, we lost $80000 on this and “rented” for $2000 a month with absolutely nothing to show, they can choke on that house. This is the game they are playing now …. if it were worth more than we owe, it would have been long since sold. Deed in lieu must be a much better deal for the bank somehow, but I dont care. Bottom line, our names will remain on the deed “technically” until they go do something with it, and that could be years, literally. So what, any maintenance of the property must either be done by the bank or for instance if the county moves in and mows the lawn, they will slap a lien on the deed, which will transfer to the next owner (the bank, you would think, but surely they will leave it sit there until a new buyer comes in, then they will have to deal with it or negotiate with the bank). Technically we the “owners” will get notices of such maintenance, but I don’t care what anybody says, the bank knows damn well its their house now, but its not worth it to them to do anything yet….

]]> By: Pamela Brownehttp://www.thebklawyer.com/thebkblog/2007/02/21/are-there-tax-consequences-if-you-surrender-your-home-in-bankruptcy/#comment-14282 Pamela Browne Fri, 09 Sep 2011 18:04:47 +0000 http://host.jonathanginsberg.com/~thebklaw/thebkblog/?p=114#comment-14282 I filed a chapter 7 in March 2011, was discharged on July 2011. In the filing, I surrendered my home. Owed too much and it severely depreciated because of the housing situation in GA. I vacated the house in July 23rd and told the mortgage company I am no longer there. How do I surrender the property to them? You know...just hand over the keys and move on with my life? They were talking about Deed in Lieu of Foreclosure but it's an intense process...almost like applying for another mortgage. They want tax returns and paystubs...! and I'm saying, wait, I surrendered the property. I was discharged from that debt. All I want to do is give you back the keys and then the property is in your hands. Any comments? I filed a chapter 7 in March 2011, was discharged on July 2011. In the filing, I surrendered my home. Owed too much and it severely depreciated because of the housing situation in GA. I vacated the house in July 23rd and told the mortgage company I am no longer there. How do I surrender the property to them? You know…just hand over the keys and move on with my life? They were talking about Deed in Lieu of Foreclosure but it’s an intense process…almost like applying for another mortgage. They want tax returns and paystubs…! and I’m saying, wait, I surrendered the property. I was discharged from that debt. All I want to do is give you back the keys and then the property is in your hands. Any comments?

]]> By: Jonathanhttp://www.thebklawyer.com/thebkblog/2007/02/21/are-there-tax-consequences-if-you-surrender-your-home-in-bankruptcy/#comment-12883 Jonathan Mon, 20 Dec 2010 22:24:29 +0000 http://host.jonathanginsberg.com/~thebklaw/thebkblog/?p=114#comment-12883 <p>Gary, if you surrendered the house in Chapter 7, and you received a discharge, then you no longer have any liability on this debt. Any effort to collect a discharged debt is a per se violation of the discharge stay.</p> Gary, if you surrendered the house in Chapter 7, and you received a discharge, then you no longer have any liability on this debt. Any effort to collect a discharged debt is a per se violation of the discharge stay.

]]> By: Gary Dufresnehttp://www.thebklawyer.com/thebkblog/2007/02/21/are-there-tax-consequences-if-you-surrender-your-home-in-bankruptcy/#comment-12882 Gary Dufresne Mon, 20 Dec 2010 20:55:04 +0000 http://host.jonathanginsberg.com/~thebklaw/thebkblog/?p=114#comment-12882 <p>My wife and filed chapter 7 in 2009.The debt was discharged in March of 2010.We surrendered our house in this due to not getting help from mortgage co.starting June,2010 we got mail from our mortgage Co. demanding money to settle the debt.Then we were told they transferred our mortgage to another Co. and they are doing the same thing plus calling us constantly,i thought by surrendering it, it would stop this harassment but this is not the case.Is there anything we can do legally to stop this? Please help!!!</p> My wife and filed chapter 7 in 2009.The debt was discharged in March of 2010.We surrendered our house in this due to not getting help from mortgage co.starting June,2010 we got mail from our mortgage Co. demanding money to settle the debt.Then we were told they transferred our mortgage to another Co. and they are doing the same thing plus calling us constantly,i thought by surrendering it, it would stop this harassment but this is not the case.Is there anything we can do legally to stop this? Please help!!!

]]> By: Brendahttp://www.thebklawyer.com/thebkblog/2007/02/21/are-there-tax-consequences-if-you-surrender-your-home-in-bankruptcy/#comment-11832 Brenda Sat, 09 Jan 2010 15:10:35 +0000 http://host.jonathanginsberg.com/~thebklaw/thebkblog/?p=114#comment-11832 <p>I was so glad to find this answer regarding taxes on a house included in a Chapter 7 bankruptcy! I'm going to try to file my paperwork with a lawyer, and this was a huge concern for me.</p> I was so glad to find this answer regarding taxes on a house included in a Chapter 7 bankruptcy! I’m going to try to file my paperwork with a lawyer, and this was a huge concern for me.

]]> By: Jonathanhttp://www.thebklawyer.com/thebkblog/2007/02/21/are-there-tax-consequences-if-you-surrender-your-home-in-bankruptcy/#comment-10641 Jonathan Tue, 16 Dec 2008 19:32:56 +0000 http://host.jonathanginsberg.com/~thebklaw/thebkblog/?p=114#comment-10641 <p>Criss, I can only speak to the procedures common in the Northern District of Georgia, where I practice. Generally, if you state your intention to surrender in your Chapter 7 petition, that will trigger the mortgage company to hire counsel and file a Motion for Relief from Stay. Once the stay is lifted, the lender will begin the foreclosure process. In Georgia, that involves advertising the property for sale in the official county newspaper for four weeks. Foreclosure would be the first Tuesday of the month following the advertising. If you are still there, the lender (or foreclosure purchaser) will file an eviction notice and the judge in the eviction proceeding will usually give you 7 to 14 days to leave.</p> Criss, I can only speak to the procedures common in the Northern District of Georgia, where I practice. Generally, if you state your intention to surrender in your Chapter 7 petition, that will trigger the mortgage company to hire counsel and file a Motion for Relief from Stay. Once the stay is lifted, the lender will begin the foreclosure process. In Georgia, that involves advertising the property for sale in the official county newspaper for four weeks. Foreclosure would be the first Tuesday of the month following the advertising. If you are still there, the lender (or foreclosure purchaser) will file an eviction notice and the judge in the eviction proceeding will usually give you 7 to 14 days to leave.

]]> By: crisshttp://www.thebklawyer.com/thebkblog/2007/02/21/are-there-tax-consequences-if-you-surrender-your-home-in-bankruptcy/#comment-10640 criss Tue, 16 Dec 2008 19:16:33 +0000 http://host.jonathanginsberg.com/~thebklaw/thebkblog/?p=114#comment-10640 <p>I have filed a chapter 7..how long to I have before I am kicked out of my home</p> I have filed a chapter 7..how long to I have before I am kicked out of my home

]]> By: Camihttp://www.thebklawyer.com/thebkblog/2007/02/21/are-there-tax-consequences-if-you-surrender-your-home-in-bankruptcy/#comment-8160 Cami Fri, 25 Jan 2008 16:36:14 +0000 http://host.jonathanginsberg.com/~thebklaw/thebkblog/?p=114#comment-8160 I have filed for a BK7 my court date is Feburary 8. I am going through a divorce. We both left the home. It is getting ready to be sold at a lesser value. My question is since i filed a BK7 do i have to pay for the back taxes on the home? we stopped paying the morgage sometime in march i believe thank U Cami I have filed for a BK7 my court date is Feburary 8. I am going through a divorce. We both left the home. It is getting ready to be sold at a lesser value. My question is since i filed a BK7 do i have to pay for the back taxes on the home? we stopped paying the morgage sometime in march i believe

thank U
Cami

]]> By: Non-Bankruptcy Foreclosure Workouts - Does It Make Sense for You? | theBKbloghttp://www.thebklawyer.com/thebkblog/2007/02/21/are-there-tax-consequences-if-you-surrender-your-home-in-bankruptcy/#comment-4687 Non-Bankruptcy Foreclosure Workouts - Does It Make Sense for You? | theBKblog Wed, 07 Mar 2007 16:11:18 +0000 http://host.jonathanginsberg.com/~thebklaw/thebkblog/?p=114#comment-4687 [...] resort, there are some cases where bankruptcy does make sense.  For example, as I discussed in a previous post on this blog, a deed in lieu of foreclosure or a voluntary surrender may result in a large tax bill, whereas the [...] [...] resort, there are some cases where bankruptcy does make sense.  For example, as I discussed in a previous post on this blog, a deed in lieu of foreclosure or a voluntary surrender may result in a large tax bill, whereas the [...]

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