Surrendered Property

[helpneededintex]

Hello!

I live in Texas and I have a few questions regarding surrendering property while in Chapter 13. First, we filed in May 2005 and have had our 341 (June 2005). We were $14K in arreages with Chase (5 mos, plus their attorney fees) when we filed. Our total debt including the IRS total $22K. We thought we could stay in our home but after Chase did their "escrow analysis" our mortgage payments increased to almost $1700 per month. We called our attorney and informed him that we would like to surrender the property and will be moving out in September.

We moved but Chase's attorneys continue sending us notices that we can keep the home if we pay so much money (like $8K). Anyway, to make a long story short what happens after you surrender the property? Do I need to notify the trustees office so that they can stop sending payments to Chase? Also, is it necessary that I stay in Chapter 13 since my only other debt is $6K to the IRS and $2K in credit card debt?

We are on a 40 month payment plan but we have been in BK for almost 7 mos. Our payment is $500 per month which is payroll deducted.

Can anyone give me advice before I call my attorney?

Thanks in advance for your help

[bkfiler]

my best advice is call the attorney. he knows the trustee and the plan. not much else to worry about. you have made your choice and moved out.

any money not sent to chase will probably be reassinged and distrubuted to everyone else.

[Minnymouth]

Areyou telling us that you surrendered a home in a chapter 13 case without notifying the Trustee or your attorney until AFTER YOU DID IT.......????

Quite possibly, your actions may still COST YOU....... You may still be required to pay the mortgage company all owed to them under the Chapter 13 plan...... (whether you keep the home or not)... This decision will have to be made by the Trustee and US Trustee......
Also you cannot just "drop out of a Chapter 13" because you want too........... it has to be dismissed by the Court and then you will still be responsible for the full amount of all debts...............
You need to contact your attorney and the Trustee as soon a possible regarding the above issue.

Let us know what they tell you.

[helpneededintex]

First let me clarify that I contacted my attorney before I moved out of the house. He notified the attorney's for Chase that we were moving out of the house on September 30th. This was a difficult decision for me and my husband because we built that home with the intention of staying in it at least 15 yrs but with corporate downsizing (we both lost our jobs the same day) it was impossible. I am aware that I had sometime before I moved but I did not want to stay in my home beyond Sept 30th because we found a new place that was privately owned and was 1/2 of what we would pay in mortgage.

I am not running away from my responsibilites and want to pay my debts (that is why I filed Chapter 13) but if I'm no longer in the home why would I need to pay the arreages to Chase. They have what they want and I have a peace of mind.

According to my attorney (he called today), the monies that were being disbursed to Chase will go to my other creditors. I will be able to pay my debts 100% and will be out of BK at the end of the year. The only other debt I have is the IRS and credit card debt which totals $8K.