§ 32.5     Foreclosures, Repossessions and Surrenders
Cite as:    Keith M. Lundin, Lundin On Chapter 13, § 32.5, at ¶ ____, LundinOnChapter13.com (last visited __________).

The debtor should schedule as property of the estate property that has been foreclosed upon, repossessed or surrendered to a creditor. The debtor may be able to use Chapter 13 to recover property that has been lost to a creditor.1


There are often deficiencies owing to creditors that repossessed property, and months can pass before the property is sold and a claim made against the debtor. Debtors sometimes think that because the property is gone, there is no debt and no need to mention the embarrassing repo. Deficiency claim holders pop up months into a Chapter 13 case and can badly disrupt even a confirmed plan. Counsel has to push to get all the information on the front end about repossessions and returned items.


1  See §§ 46.2 [ Prepetition Repossession, Levy, Sale or Conveyance ] § 46.4  Prepetition Repossession, Levy, Sale or Conveyance, 52.1 [ Turnover of Property ] § 50.1  Turnover of Property and 130.1 [ Prepetition Defaults ] § 82.1  Prepetition Defaults—When is Property “Sold” at Foreclosure?.