Expert: Terry Leeders - 2/10/2009

Question
I filed a chapter 7 bankruptcy pro se. I listed my commercial property and the first and secone mortgage as a secured creditor. I want to surrender the property and stated that on the petition. I have been through the 341 hearing and the time to file an objection to the petition has passed. I am expecting my discharge papers shortly. I have not received any correspondents from the mortgage companys what so ever. What is the proceedure and my requirements to surrender the property. Do I have to contact the lender to sign over the deed? do I just drop the keys off? or do I do nothing? please advise. the petition was filed in NJ if that matter.  Thank you

Answer
The lender will institute foreclosure proceedings when they are ready to start the process. You can do a deed in lieu of foreclosure if the lender offers it.  Technically, the lender cannot do anything until they modify the automatic stay in your bankruptcy case.  You can sit back and wait until they are ready.