Legal Question in Bankruptcy in Illinois

We just recently found out that our home was included and discharged in our bankruptcy filing back in December of 2007 (long story). We spoke with a local attorney who told us that we are no longer legally liable for the property and that we can choose to stop making payments (mortgage, ins. and taxes) and walk out the door really at anytime. My questions are: Should we give the bank any notice? Though I understand the property is no longer owned by us, it is winter and very cold - I'm concerned the pipes might freeze, etc. - should we give notice so that they can winterize the property from damage?

Also - it might sound silly but what do we do with the keys to the property? Do we mail those to the bank?

Then, do we notify the utility companies and County (re: taxes) that we will no longer be responsible for the property once we leave? Do we direct these ongoing bills to anyone in-particular?

Help - Thank You.


Asked on 12/13/10, 12:15 pm

1 Answer from Attorneys
Charles Dobra Charles Wm. Dobra, Ltd.

What do you mean that "we recently found out that our home was included and discharged...." In reality, what you probably mean is that your personal obligation to pay the mortgage was discharged. Now, I have to conclude that you signed the bankruptcy papers -- under oath -- so I don't think that you can honestly say that "Duh, I didn't know". So, IF this obligation was discharged, you can give the keys back to the bank; I would let them know that they have to come out and change the locks and winterize the house. Good Luck. Oh, by the way, you should have your lawyer check with the county collector. If there was a double payment of taxes, you could be owed a refund.

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Answered on 12/18/10, 12:46 pm


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