Posted On: January 26, 2011
Can I Surrender Real Property in a Florida Bankruptcy?
Many times debtors are willing to part with real estate property. However, banks and other lenders will choose not to accept the signing over of the deed from the borrower for a release of liability. What should a debtor do in this situation? Will bankruptcy protect the debtor?
The short answer is yes. If the debtor qualifies and files for a Chapter 7 bankruptcy and surrenders property, the debt on the property will be discharged as to the debtor filing for bankruptcy. However, if only one party to the note files for bankruptcy, then the lender can legally seek full recourse against the party who did not file for bankruptcy.
If you have questions about Florida Foreclosures or Bankruptcy Law contact a Florida Attorney
Greg Gilbert
Keith Maynard
