Should a foreclosed property be listed as real property in a bankruptcy case?

You say that the home has been foreclosed on. If so—that is, if it’s not merely in the process of foreclosure, or being threatened with foreclosure, but has already been taken by the bank—then you don’t need to list it as asset. In point of fact, it’s not an asset of yours; once property has been foreclosed on, you are not the owner anymore—the bank is.

Under bankruptcy rules, such as those for a Chapter 7 bankruptcy, debtors need to file with the court a “schedule of assets and liabilities.” Something you do not own is not an asset and would not be included on this schedule.

However, you should list the remaining balance of the mortgage debt as a liability. In many or most states (though not all), if a lender forecloses on property, it can still go after the debtor for any remaining money owned after the proceeds from selling the foreclosed property are applied against the outstanding balance of the loan. The home therefore is not an asset, but the remaining balance of the mortgage may be a liability that will be considered during a bankruptcy proceeding. Having a bankruptcy attorney represent you can help make sure you list all assets, income, debts, and liabilities properly.