Michael L. Detzky Bankruptcy Law Blog on Lawyers.com

Halloween brings its fair share of scary things. Ghosts, goblins, vampires and things that go bump in the night are certainly worthy of  fright. A "Notice of Abandonment" from the Bankruptcy Trustee shouldn't be one of them. Unfortunately all too often I receive frantic calls from concerned clients who have just received a trustee's notice of "Proposed Abandonment" of his or her interest in the client's home. Even though we discussed the meaning of a notice of abandonment at our intial consultation, client's don't always remember what was discussed when they receive this notice several months after the case has been filed and  they panic, believing, erroneously, that it means that they have to abandon or give up thier interest in their home. The actual meaning of a "Notice of Abandonment" is  the reverse. The Chapter 7 case trustee is indicating his or her intention to give up his or her interest in the real estate and NOT to administer it in any fashion. In other words, it signifies that the trustee is abandoning his or her interest in the real estate and  has no further interest in it whatsoever. If you are current in your mortage payments on the home, this abandonment means that as long as you continue to make your mortgage payments, your bankruptcy case will not affect your ownership interest in your home. If you are in arrears on your mortgage payments, it still means that the trustee has no further interest in your home but unless you find a way to become current in your mortgage, the mortgage holder can still obtain relief from the stay and commence foreclosure proceedings. So, enjoy Halloween and don't be frightened by the spectre of ABANDONMENT!

Michael L. Detzky, Esq

45 Court Street

Freehold, NJ 07728-1709

www.detzkylaw.com