The debtor’s surrender of property does not divest debtor of title to property in a Bankruptcy proceeding in Michigan.
A Chapter 13 debtor’s surrender of real property collateral has no impact on the debtor’s status as record owner of the property. Under the Bankruptcy Code, the debtor’s “surrender” merely establishes she will not oppose the transfer of collateral. Absent some further action—such as foreclosure, deed in lieu of foreclosure, or short sale of the property—surrender does not divest a debtor of ownership and its obligations. In re Spencer, 457 B.R. 601 (E.D. Mich. 2011).