Personal Bankruptcy Still liable on property after a discharge from chapter7

[sam6222]

Hello,
I was recently discharged from chapter 7 and had a rental property that was included in the bankruptcy. The mortgage co. says they are going to keep it in my name and place a lien on the property, therefore I am still responsible for all the taxes, insurance, and upkeep on the property. Their reasoning for not taking the property back or foreclosing is they dont want to be liable for the taxes,insurance and upkeep as far as city codes are concerned. Can they make me liable for the insurance etc.. if this was part of the bankruptcy?
Thank You

 

[Theresagail]

No I don't think so, I would contact your bankruptcy attorney and see what his thoughts are-- this would mean if you don't pay the taxes the state will take over the property and the mortgage holder relies on you for the payment? This does not make sense, your contract with them has been surrendered and in the contract it states you must keep and maintain insurance and property taxes? Defiantly call your attorney or the bankruptcy clerk, maybe your state is different? unless you have reaffirmed this property if you did then yes you are fully liable for all of that.

 

[sam6222]

Thanks for your reply. The note was not reafirmed & they are saying they will keep it in my name and I am still responsible for the taxes,insurance but that they will just put a lien on it. They state that if I do not pay the insurance & something catastrphic happens to it then they can come back at me for the loss of the property. My attorney has quit the firm & they reappointed another attorney but since the case is closed he wants $$ from me to help me out here. Im unemployed at this time & cant afford to do so, so I dont know what to do or if this just sounds like they want me to sell it and then I have to pay capital gains on it!

 

[sam6222]

No I don't think so, I would contact your bankruptcy attorney and see what his thoughts are-- this would mean if you don't pay the taxes the state will take over the property and the mortgage holder relies on you for the payment? This does not make sense, your contract with them has been surrendered and in the contract it states you must keep and maintain insurance and property taxes? Defiantly call your attorney or the bankruptcy clerk, maybe your state is different? unless you have reaffirmed this property if you did then yes you are fully liable for all of that.

Thanks for you reply. This note was not reafirmed and they state they will keep it in my name & put a lien on it & if something catastrophic should happen & I dont keep up with the insurance on it they can come back after me for it.They say the bankruptcy only relieves me from making the mortgage payment. They state they will do a short sale but I will pay capital gains on this since it was rental property. Can it go to a tax sale if they have a lien on it? My lawyer has quit the firm & I was reappointed another lawyer but since the my case is closed he wants $$ from me to just to answer any questions and I am currently unemployed & cant afford to do this at this time. Again I appreciate all the advice from you!

 

[Theresagail]

call the bankruptcy court clerks and see what they think-- I really dont think this is legal, I dont see how you can be held liably for a piece of property that you discharged in bankruptcy. They should already have a lien on the deed of the property. I would hold your bankruptcy papers real close and talk to a collection or bankruptcy manager @ the finance company and have them try to explain how they can hold you liable for this. I would pull out your original loan contract from the property and read the fine print real close-- I feel they would be in voilation of the bankruptcy code if something did happen and they did go after you.

I am not an attorney. Try and locate your original attorney if @ all possible so you can ask him for sure