Freaking out big-time! New entry on PACER

[Dirk Squarejaw]

I am current on all of my secured loans and thought everything was going well. Then, today I looked on PACER and noticed this entry about abandoning property. Is this some sort of formality, or are they actually asking for me to abandon this property that I'm current on? Of course, I find this out at 4:45 and my lawyer is gone for the day.

It is the first one since the Initial Report on 9/20:


UNITED STATES BANKRUPTCY COURT

In Re: Dirk Squarejaw
SSN: xxx−xx−xxxx EIN: NA Case Number:

Debtor(s)
ORDER IN NO ASSET CASE
In reliance upon the Trustee's Report of No Distribution, the Court finds that the property of the estate, if any, should be abandoned and that secured creditors with nonavoidable, perfected security interests in any such property should be granted limited relief from the automatic stay as
more specifically set forth hereinafter.

THEREFORE, it is ORDERED that the scheduled property of the estate, if any, shall be, and hereby is, abandoned; and it is

FURTHER ORDERED that secured creditors with nonavoidable, perfected security interests in any such property shall be, and hereby are, granted limited relief from the automatic stay to pursue their valid claims against such property in accordance with applicable law; and it is

FINALLY ORDERED that the Trustee is hereby discharged of his/her trust in the above−captioned case.

THE AUTOMATIC STAY REMAINS IN FULL FORCE AND EFFECT EXCEPT AS
SPECIFICALLY SET FORTH HEREINABOVE.

Dated: October 21, 2008

JUDGE: -------------------
U.S. BANKRUPTCY COURT

[BK2008]

Did you surrender the property when you did your paperwork?? If not, you have a few choices: Reaffirming the loan (if your lender offers it) or doing a ride-through.

Perhaps it's an error on your attorney's end. Please contact him tomorrow and find out what the deal is, or you could be out of a home.

[Dirk Squarejaw]

The "recipients" are Citibank, something-Recovery Services and myself. I reaffirmed with Citibank and have kept the account current. In fact, I've been paying it about 2 weeks in advance of the due date and then I see this. Its the 2nd mortgage on the house.

Did you surrender the property when you did your paperwork?? If not, you have a few choices: Reaffirming the loan (if your lender offers it) or doing a ride-through.

Perhaps it's an error on your attorney's end. Please contact him tomorrow and find out what the deal is, or you could be out of a home.

[StartingOver08]

Are you a CH 7 or a CH 13?

Is it possible that he is trying to do a lien strip on your second mtg?

[Dirk Squarejaw]

I called my lawyer's office this morning and the lady that answered the phone said that this is a procedural thing. She said that all "ORDER IN NO ASSET CASE" documents are worded that way and the key is the "if any" statement. She said this document is a good thing and is sort of a sign that I'm over the hump and everything should just wind down until the discharge.

[WoodSprite]

I called my lawyer's office this morning and the lady that answered the phone said that this is a procedural thing. She said that all "ORDER IN NO ASSET CASE" documents are worded that way and the key is the "if any" statement. She said this document is a good thing and is sort of a sign that I'm over the hump and everything should just wind down until the discharge.

Whew! So glad to hear that! Man, PACER can be a life-saver or it can scare the stuffing out of you...

[AngelinaCat]

We got a similar notice of Abandonment of Interest in our three automobiles, and our real property. The autos were either too old, or fully encumbered--one has a loan against it that we are repaying to our CU. Our land was sold to a state entity, but we retained a life-estate and that is homesteaded.

This is actually a very GOOD thing.

[Mi Bankruptcy]

Yikes.. Thanks for posting this.. Especially since I am considering not reaffirming my home, even though I am current and plan on keeping it.

[AngelinaCatHub]

Your PACER message is the best thing to happen to you. Abandonment means what you own is given back to you from the bk estate and they have no interest in it. You are a no asset case anyway and this is almost a discharge as the Court is releasing your Trustee.

P.S. Keep checking PACER, I will bet by end of day you may be in the Discharge Club for Oct.

[HHM]

Freaking out....bah

This is the BEST news you can get in your case. (short of the order of discharge).

Your case has been declared a no asset case and the trustee is essentially closing the BK estate.

Technically, here is what happened:

1. When you file BK, ALL you assets (property) are placed into what is called a Bankruptcy Estate. The BK trustee is appointed to manage the BK Estate.
2. When you receive a discharge, the BK Estate closes and all assets are "returned" to the debtor (you), except for any non exempt assets.
3. In some districts, like yours, they will issue an order stating that the BK estate is abandoning the property. What that means is the trustee is giving YOU back YOUR property. Basically, you are now in full control of everything you own.
4. By the same token, when the BK estate abandons the property, secured lenders are typically allowed to exercise their state law remedies if any exist (i.e. if you are behind on your mortgage payments, your mortgage lender would be free to foreclose at this point.