What does it mean to surrender property in bankruptcy?
Statement of intention - this is a form filed in a Chapter 7 bankruptcy where the Debtor declares how he intends to handle secured debt or an executory contract. For example, the debtor may reaffirm, retain and pay, redeem or surrender in a chapter 7 bankruptcy.
Statement of financial affairs - this is a bankruptcy form that a Debtor is required to answer. The questions asked pertain to Debtor's assets and income among other things.
Secured Debt - this is debt where the creditor has a lien. The type of lien varies depending on the type of property securing the debt.
Schedules - these are documents filed as part of the bankruptcy process where the Debtor lists all assets and all debts.
Relief from Stay - when a Creditor is permitted by the Court to take action to collect debt or regain collateral. The stay may also be lifted to permit other litigation to proceed, such as a divorce proceeding. Many times, relief from the stay is conditional depending on the performance of the debtor.
Redemption - this is the procedure in a Chapter 7 bankruptcy where the Debtor pays the replacement value of property to the creditor (not the amount due on the account). A redemption is required to be made in a lump sum payment, and not under installments. The debtor must bring a motion and obtain a [...]
Real Property - real property is generally land, and ownership interests associated with land, such as oil and gas leases and timeshare interests.
Reaffirmation agreement - this is an agreement entered into between the Debtor and creditor in a Chapter 7 bankruptcy where the Debtor agrees to continue to be legally liable for the debt even after the bankruptcy discharge. Reaffirmations are required where a Debtor wants to keep a secured item, such as a car.
Purchase money security interest - type of lien formed when a person borrows money or charges on an account to buy a specific piece of property.