25bk10807
Upon an objection to the confirmation of the debtors’ chapter 13 plan, wherein the creditor alleged that the debtors’ “surrender” of property in a previous bankruptcy case under section 1325(a)(5)(C) of the United States Bankruptcy Code and receipt of a discharge did not change the debtors’ ownership interest nor absolve them of liabilities incident to ownership that have accrued since then, held: “Surrender” under section 1325(a)(5)(C) is a claims mechanism and does not effectuate a transfer of ownership interests without acceptance by the creditor. A discharge in bankruptcy only extinguishes a debtor’s in personam liabilities that arose before the bankruptcy in which the discharge is granted. As a result, the creditor’s claims relating to the property must be addressed the debtors’ bankruptcy case and plan. The creditor’s objection is sustained.