Eversheds Sutherland 11th Circuit Business Blog
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“Surrender” Means “Surrender” – A Debtor Who Surrenders Collateral in Bankruptcy Gives Up the Right to Oppose Foreclosure

David and Donna Failla filed for Chapter 7 bankruptcy protection in 2011. Shortly thereafter, the Faillas filed the “statement of intention” required by section 521(a)(2) of the Bankruptcy Code with respect to their house, which was subject to a mortgage held by Citibank.  In the statement, the Faillas agreed to “surrender” the house instead of the other options provided under the...