Am I liable for my home after bankruptcy? 14 Answers as of January 08, 2011

I walked away from my house after bankruptcy. Am I still liable for the property? Do I need to still pay any property insurance? There has since been squatters living in the home and the police said that they cant get them to leave. They said I need to pay for an eviction process. Is this still my responsibility?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Mankus & Marchan, LTD
Mankus & Marchan, LTD | Tony Mankus
If the bank has not foreclosed on the property and taken possession of it, the property is still titled in your name and you are responsible for it. It would be wise to keep an insurance policy in effect. Consult with a real estate attorney in your area.
Answer Applies to: Illinois
Replied: 1/8/2011
DiTocco Law Group, PLLC
DiTocco Law Group, PLLC | Tony DiTocco
A Bankruptcy filing will usually discharge your personal responsibility under the promissory note you signed, although it will not discharge the mortgage itself. If you intend to abandon the property, you oshould contact the Lender and inform them of your intent.

The foregoing should not be relied on as legal advice, as individual circumstances differ. You should seek the advice of an attorney regarding your specific situation.
Answer Applies to: Florida
Replied: 1/2/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Yes, you still own it until foreclosed by the lender.
Answer Applies to: California
Replied: 12/31/2010
Greifendorff Law Offices, PC
Greifendorff Law Offices, PC | Christine Wilton
Until the title of the property has been transferred from your name, you can be liable. Simply walking away and filing bankruptcy will eliminate your obligation on the debt owed to the lender, but if you're still on title, you may have some liability. If you have stated your intent to surrender the premises, the lender will still need to proceed with a foreclosure or some other sale of the property out of your name.
Answer Applies to: California
Replied: 12/30/2010
DiManna Law Office, LLC.
DiManna Law Office, LLC. | Dawn DiManna
Probably not but it depends on whether you have received your discharge, and who the bank is. You should consult with an attorney with more specific facts to be sure.
Answer Applies to: New Hampshire
Replied: 12/30/2010
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    Until there's an actual foreclosuredepending on your state that can be months or even years after the bankruptcyyou are still the owner. Filing bankruptcy gets rid of your debts, but it doesn't get rid of all your problems.

    You are liable for accidents, your are liable for your home owners association if there is one, and you are liable for zoning violations. You really did not want those squatters to move in there, who could get hurt and sue youor who might hurt someone else who then sues you. (All small risks but lawyers are paid to be paranoid.) I tell my clients don't move out until the bank puts you in the street.

    Keeping up your insurance is the minimum you need to do to protect yourself.
    Answer Applies to: Virginia
    Replied: 12/30/2010
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Assuming that you filed a Chapter 7 and received a discharge then you are not liable for any debts incurred before the date you filed the case. However, the house may still be in your name and you are liable for injuries and damages to others related to the house incurred after you filed for bankruptcy. The city might have an ordinance or law making you liable for not taking care of the property. You may be liable by not safeguarding the house. The bank is not obligated to foreclose and sometime it takes the bank a long time to do it. One of the reasons banks sometimes delay foreclosing is so that it does not become liable for what happens in the house while vacant. You need to consult an attorney regarding this potential liability, particularly since you cannot file another Chapter 7 bankruptcy case for 8 years. I always recommend to my clients that they continue to pay the insurance even if they surrender the house in bankruptcy until the trustee's sale because until the trustee's (foreclosure) sale the house continues in your name and you might be liable for things that happen after the bankruptcy is filed. You can't really walk away and expect that you will not be liable for what happends in your house if you allow it to be taken over by squatters. You might be able remove the squatters who are trespassing without an eviction. Consult a lawyer right away.
    Answer Applies to: California
    Replied: 12/30/2010
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    If you are still the owner of the home, then yes you are responsible for it in that regard. I don't know that you need to pay for property insurance, but your are liable for accidents on the property, etc. so having liability insurance is a good idea. You need to either shortsell or have the property foreclosed on in order to not be liable for those aspects.

    A friend of mine started a company that will take title to such properties to get it out of your hands. I do not make any specific representations about how well it works, but you can contact us. There's no charge.
    Answer Applies to: California
    Replied: 12/30/2010
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    If you surrendered your home in a bankruptcy, you are no longer liable for it. The bank or whoever bought the house from you can evict the squatters.
    Answer Applies to: California
    Replied: 12/30/2010
    Maclean Chung Law Firm
    Maclean Chung Law Firm | G. Thomas MacLean Jr.
    Your are not liable for the loan on the property, but if title is still in your name, then you are liable for the property still. You are still the property owner, bankruptcy does not change property ownership.
    Answer Applies to: California
    Replied: 12/30/2010
    Steven D. Keist, Attorney at Law
    Steven D. Keist, Attorney at Law | Steven D. Keist
    You are not responsible for payment to the mortgage company on your residence. You are responsible for any homeowner fee until the property is foreclosed on and the deed transferred into the new owner's name.

    As far as "squatters" you might contact the mortgage company and advise them that you left the property and have been advised people are living in it, they can send someone out to rekey the property and lockbox the doors so to keep "squatters" out. You can't really put insurance on the
    property because you are not living.
    Answer Applies to: Arizona
    Replied: 12/30/2010
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    The short answer is no. However, this can vary from case to case depending on whether you had more than one deed of trust. Usually, if you only had one deed of trust once the property forecloses and your bankruptcy discharges and closes, you do not have any further liability on the property.
    Answer Applies to: California
    Replied: 12/30/2010
    Gus Johnson Attorney at Law
    Gus Johnson Attorney at Law | Gus Johnson
    your responsibility for the mortgage and the property shall be extinguished by bankruptcy.
    Answer Applies to: South Dakota
    Replied: 12/30/2010
    Christopher Legal Group
    Christopher Legal Group | Shawn Christopher
    Generally no, unless you reaffirmed the debt. If you surrendered the property in the bankruptcy, you may want to contact the lender and inform them that you vacated the property. If they have not yet foreclosed, the lender may choose to secure the property. Also, there is a good chance that the lender already placed some basic insurance on the property, but this is generally to protect the bank (not you).
    Answer Applies to: Nevada
    Replied: 12/30/2010
Click to View More Answers:
12 3 Free Legal QuestionsConnect with a local attorney