In the case of In re Failla, 838 F.3d 1170 (11th Cir. 2016), the 11th Circuit Court of Appeals resolved a split among the Bankruptcy Courts as to what “surrender” means within the context of Section 521(a)(2) of the Bankruptcy Code, by ruling that a Debtor who elects to “surrender” real property cannot oppose a foreclosure action.


The Court noted that the Bankruptcy Code does not define the meaning of the term “surrender.”  However, the Court construed the term “surrender” to mean giving up a right or claim, and held that once a Debtor surrenders the property for purposes of their bankruptcy filing, he or she relinquishes their rights in the property and can no longer continue to oppose a foreclosure action in state court.


At Gibbons | Neuman, our creditors’ rights attorneys are prepared and ready to assist you with any bankruptcy and foreclosure related issues.