Friend Claimed bankruptcy 4 years ago and property is still in his name!

[Kevin A.]

This is a legal question so anyone in NJ that know please advise.
Friend claimed Chapter 7 in 2007, it was discharged in 2008. One of the properties listed was never taken back by America servicing. They still send a bill and the tax records still come from the town.

Questions- What if any claims does he have to the property? Are there any time limits legally for the bank to take this property back? Does he still legally own the property? Can he fix it up and rent out.My guess is this isn't the first property American Servicing Corp has messed up.

Any help would be appreciated.

[Dave Toelkes]

The bankruptcy code allows each individual who files bankruptcy to keep basic assets deemed necessary for the debtor's "fresh start" after bankruptcy. That property is the debtor's "exempt property".

Exemptions are the one place where bankruptcy law varies from state to state. Many states have a homestead provision that allows debtors to exempt a portion of the equity in their primary residence.

If your friend listed his home as exempt property in his bankruptcy filing, then that property is not included in the bankruptcy estate. It is entirely possible, even after Ch 7 bankruptcy, that your friend still has title to the house.