When filing for chapter 7, one of your debt relief options may be to surrender your real estate. This option can help you eliminate the debt associated with a car loan or mortgage. However, you must prove that your ability to make the payments won’t cause you to miss your payments. A lawyer can attest to this fact, but the judge will ultimately decide whether or not you can make the payments. Check here – scura.com
Great Way To Get Rid Of Property You Don’t Want Or Need
Surrendering your property is a great way to get rid of property you don’t want or need. It can also help you keep property that’s debt-free, since you might not be able to purchase a replacement property on credit for quite some time. Surrendering your real estate is usually an easy process, and you can even complete the form online.
However, the law is not clear on the exact meaning of the word “surrender.” Surrendering doesn’t mean the debtor is free of responsibility for the property. Instead, it means that they’ve no longer intended to make payments on the loan. This doesn’t mean that they’re no longer responsible for making the payments and that they can’t avoid foreclosure. The Eleventh Circuit held that conduct such as this is inconsistent with the concept of surrender. So, it’s important to understand the legal ramifications of surrendering in a Chapter 7 case.
As with other bankruptcy options, there are some special requirements for surrendering real estate in New Jersey. A bankruptcy trustee will be able to determine whether or not you can surrender your property after filing. You may need to pay back a portion of the debt or surrender it all together. Generally, if you are able to make the payments, then you can retain your real estate in Chapter 7.