Under Section 521 of the federal bankruptcy code, a debtor in a chapter 7 bankruptcy must file a statement within 30 days of the bankruptcy filing notifying the court, creditors and the trustee whether the debtor intends to retain or surrender property encumbered by a mortgage. In its October, 2016 decision in the case of In re Failla , the 11th Circuit Court of Appeals, in affirming rulings from the bankruptcy court and the federal district court, held that once a chapter 7 debtor elects to “surrender” mortgaged property, he is precluded from thereafter opposing the efforts of the lender to foreclose its mortgage on such property.
