Post filing debt responsibility

[Boscoe]

If surrendering a home or condo, my understanding is the lender would have to actually foreclose or accept a deed in lieu in order for ownership to take place.

Between the time of filing and when the foreclosure/DIL takes place, there could be expenses incurred, i.e. prorated property taxes, utilities that have not been shut off due to non payment (especially the water bill - they would place a lien most likely).

Who is responsible for such expenses? These are not dischargeable, are they?

[SinkingFast]

The water bill could be discharged. But not without a potential penalty in the future. Other utilities could ask for sizable deposits when you try to establish new service down the road.

The taxes, I don't think, can be discharged. But, you might have enough money left in your Escrow acct, if you have one, to cover that bill.

When we were going thru this, our Foreclosure Tech told us the final figure included our Escrow as well. We got lucky and actually did sell our house. About 3 weeks or so after Closing, we got a check back from our Lender for the remainder of funds that were left in our Escrow. Hopefully you'll have that resource as well.

While taxes are a major issue, your biggest concern is liability coverage until the property is no longer in your name. If some one were to slip and fall, and break a leg on the property. That sort of issue. All the attnys we Consulted with advised us to definitely keep our house insured until the Title changed hands.