If I am Surrendering my House in a Bankruptcy am I still Responsible for the Property Taxes, Homeowner Association, or Property Insurance?

When you are a homeowner you become aware of other payments that you must make besides just the mortgage payment.  These payments can include homeowner associations/monthly maintenance charges, property taxes or property insurance.  Sometimes these payments are built into the mortgage payment (through the escrow account), however sometimes these payments must be made individually.  If you own a home and you file for bankruptcy you can select to either keep or surrender your home.  Ideally it is only best to keep your home if you are current and you know that you will be able to continue to make payments on the residence as well as any other payments associated with the home.

If you choose to surrender your home when you file for bankruptcy then you will not be responsible for the balance owed for your mortgage.  If you make separate payments for your property taxes, association fees, or property insurance then you need to list them on your bankruptcy petition and thus you will not be responsible for their debt.

In short if you are filing for bankruptcy in Florida and you surrender your home, you will likely not be responsible for the mortgage debt, the property taxes, the homeowner associations or even the property insurance on the home.

Shmucher Law, PL is a bankruptcy law firm with offices located in Fort Lauderdale, Miami, Plantation, Boca Raton, and Sunrise Florida.  Shmucher Law offers a free bankruptcy consultation and appointments can be made by calling 954.309.5559 or 305.741.5553.

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