For chapter 7 debtors, statutory means testing applies to individuals above the state median income. The availability of means testing deductions determines the result of the statutory formula, and whether a given debtor can proceed in chapter 7. One means test deduction is for payments on secured debts due in the next 60 months. By this deduction, if a debtor has an expensive mortgage payment, that payment is accounted for in determining if any monthly income is available for unsecured creditors.
A debtor surrenders property in bankruptcy when he or she releases it to a secured creditor to exercise its state law rights. In both chapter 7 and chapter 13, a debtor can surrender collateral. In most cases, surrendering collateral in bankruptcy does not change ownership of the property; foreclosure or other actions are still required.