Debtors do not surrender any property they might own in a Chapter 13 bankruptcy filing. The Debtors remain in possession of the property.
To the extent the Debtors in a Chapter 13 bankruptcy own property that cannot be exempted under the Bankruptcy Code or Texas law, then their obligation is to pay to the Chapter Trustee during the commitment period an amount of money that equals the value of the non-exempt property. For illustration purposes lets say that the Debtors own a boat valued at $5,000.00 and there is no ability to exempt the boat in the Chapter 13. In this scenario the Debtors are required to pay to the Trustee the amount of $5000.00 over the course of the Chapter 13. This $5,000.00 must be paid to the unsecured creditors, so payments to the unsecured creditors in the proposed Chapter 13 Plan must equal or exceed the value of the non-exempt property.
As always, any opinions expressed on this website are just that, opinions. So if you have a question regarding bankruptcy or debt relief, then please give me a call to discuss your individual situation. Bankruptcy, as many other areas of the law, can be very case or fact specific. I pride myself on giving you the answers to your questions that are based on your individual circumstances.