Should I have kept insurance on property after filing bankruptcy? 10 Answers as of August 17, 2015

Filed chapter 13 on home and vacated 4 months later. Should I have kept insurance on property? Can my 24 year old daughter live there until evicted?

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GARCIA & GONZALES, P.C. | Richard N. Gonzales
I would need more information to render some legal advice. The home is yours unless you vacate the property and thereby surrendering the property, or until after the foreclosure sale date. If the property is still vacant and the mortgage company has not taken possession, you can still occupy the property until the foreclosure sale date.. If you need more specific information, pay an experienced real estate lawyer for their advice. Good luck!
Answer Applies to: Colorado
Replied: 8/17/2015
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
You should keep insurance on the property until title transfers. Otherwise you could be liable for any number of events. Your daughter can live there and maintain the property. It's better than leaving it empty and abandoned.
Answer Applies to: California
Replied: 8/12/2015
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
With no insurance you will not be covered for flood, fire damage, etc. Generally, she can stay until evicted or unless trustee wants her to be removed.
Answer Applies to: New York
Replied: 8/12/2015
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Yes to both questions. The insurance protects you. If there is a post petition claim you can't include it in the current chapter 13 case.
Answer Applies to: California
Replied: 8/12/2015
A Fresh Start
A Fresh Start | Dorothy G Bunce
Typically, the lender will maintain insurance to protect its interest in the property if you are not paying for it. As long as your daughter has your permission to live in the property, the lender is helped, not hurt, by having the property remain occupied.
Answer Applies to: Nevada
Replied: 8/12/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    If your own insurance lapsed, it is likely that the lender procured its own insurance, but only to cover the lender's interest not your possible liability or for the cost of injury to your property from fire, theft, etc. So long as you own the property, even if it is subject to foreclosure, you can use it, including for your daughter. But it would be wisest to procure homeowner's insurance promptly. Good Luck.
    Answer Applies to: Wisconsin
    Replied: 8/12/2015
    Mauritz Van Niekerk, Attorneys at Law
    Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
    Yes, keep insurance and yes, she can stay there.
    Answer Applies to: New York
    Replied: 8/12/2015
    Ronald K. Nims LLC | Ronald K. Nims
    Yes, you need to keep insurance on any property which is in your name. For example, if a neighborhood kid gets hurt on your property, you will be liable. Remember, you can't file bankruptcy again for 8 years.
    Answer Applies to: Ohio
    Replied: 8/12/2015
    Garner Law Office
    Garner Law Office | Daniel Garner
    It is always wise to keep insurance on property until it is out of your name, because you remain liable for anything that happens on the property until it is no longer yours. As long as it is in your name, you can rent it to anyone but if you are still in chapter 13, you have to report the rental income (if any) to the trustee. If you are surrendering the house as part of your chapter 13 plan, you can push on the mortgage lender to take the deed in lieu of a sale, or to conduct a short sale, or to foreclose. Most people want to avoid a foreclosure because it is as bad as a bankruptcy on your credit report, but sometimes there are so many liens on the property that it is impractical to do a short sale. In such cases, foreclosure is the only option.
    Answer Applies to: Oregon
    Replied: 8/12/2015
    Patrick W. Currin, Attorney at Law | Patrick Currin
    You do face potential liability until the house leaves your name. The daughter can live there until it changes hands, even then as a non bona fide tenant she could have 90 days of rental. Banks rarely collect in this instance and often provide cash incentives to move.
    Answer Applies to: California
    Replied: 8/11/2015
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