i recently filed bankruptcy and my house is in foreclosure, when am i not responsible for the house anymore?
the sewer company says we have to pay until the house is sold because they can’t turn it off, but everything else is turned off…kind of hard to flush the toilet with no water!!
So long as you’re still the owner–even in bankruptcy, even facing foreclosure–you’re responsible. I’m not a lawyer (check with a lawyer), but you’re responsible until the deed is transferred. You may want to check with the city to verify what the sewer company’s saying, but it probably is correct; for safety reasons, it may be prohibited from stopping service.
May 29th, 2010 at 8:24 amIf you are in bankruptcy, tell your attorney if the water/sewer/electrictiy/any other utilities are shut off after you filed bankruptcy. The court should sanction the utility provider for that. Also, make sure your attonrey notifies the utility providers about the bankruptcy.
May 29th, 2010 at 8:24 amThe date the home sells at auction and the Deed is transferred to the new owner (usually the bank) is when you will no longer be the responsible party. That being said, make sure you discharge the property and the mortgage in the bankruptcy.
What intrigues me is whether you are still in the property. You said the utilities were turned off, but you still had to flush the toilet. You can petition the bankruptcy judge to force the utilities to be turned back on. Its worth a shot. Also check with your local laws regarding turning off utilities when the property is still inhabited
If you are concerned about the debt, just include the utilities in your bankruptcy and the debt will be cancelled upon discharge.
Mr. Financial Freedom
May 29th, 2010 at 8:24 amhttp://www.5stepstofinancialfreedom.com