Is surrendering a property in bankruptcy the same as foreclosure?
Matthew asked:
I have been talking to a few attorney’s and they tell me that you can surrender property in either a Chapter 7 or Chapter 13 bankruptcy.
I have been talking to a few attorney’s and they tell me that you can surrender property in either a Chapter 7 or Chapter 13 bankruptcy.
If you “surrender” the property, does it still count as a foreclosure against you? Does the bankruptcy protection, from either a Chapter 7 or 13, protect you from possible lawsuits etc?
I know many people view Chapter 7 as liquidation, but I have been told by many attorney’s you can also surrender in a 13 but people just opt not to.
Tags: Chapter 13 Bankruptcy, Chapter 7, Property Foreclosure
April 19th, 2010 at 6:57 pm
You can surrender property under either Chapter. It’s the same as a foreclosure or repossession. The bankruptcy protects you from any deficiency judgment.