Bankruptcy And Apartment Lease
Posted on
June 4, 2009
at
4:13 am
My parents are about to file bankruptcy Chapter 7. They co-signed my apartment lease. I still have 6 months on the contract (the contract is for a year) and I'm planning on breaking it because I found a cheaper one, I won't be able to afford the monthly payment for this anymore. Would my parent's bankruptcy take care of the amount I'm going to owe the landlord if I break the lease? What's the worst thing that can happen to me if I break the lease? Can anybody advice on the general rule of thumb with regards to apartment leases and bankruptcy? Thanks.
Posted on
June 4, 2009
at
5:14 am
No, your parents bankruptcy does not have anything to do with your apartment lease. What you can do is review your contract and look for the clause about when tenants want/need to break the contract. There might be a fee there that you'd have to pay. Although sometimes, the deposit that you gave upon the contract signing is enough to cover your taking off prematurely.The case usually with bankruptcies and leases pertain to the landlord evicting the tenant.
Posted on
June 4, 2009
at
5:23 am
The consumer usually file bankruptcy to avail of the protection that the automatic stay provides. If for example, the consumer was told by the landlord that he/she is going to be evicted from the property that he/she is leasing, or that the landlord has obtained judgment of possession under the state law against the consumer, if the apartment lease (for example) is "unexpired" or has not yet ended, the consumer may stay in the apartment, as long as the landlord has not yet received from the court what is called writ of possession.I am not a lawyer, but that is the general idea.
Posted on
June 4, 2009
at
5:27 am
Would bankruptcy and apartment lease also pertain to, for example my son, not being able to rent another apartment because his credit report has a bankruptcy on it?
Posted on
June 4, 2009
at
5:43 am
What happens if the tenant filed bankruptcy while still in the contract? What happens to the landlord?
Posted on
June 4, 2009
at
5:58 am
Section 365 of the Bankruptcy Code gives the tenant the right to assume, assume and assign or reject an "unexpired" lease. It has to be established that the contract has not yet expired when the consumer filed bankruptcy. If it has expired then the consumer cannot lean on the rights that Section 365 provides--together with the automatic stay. What happens then if the consumer filed bankruptcy when clearly the lease is still "in force" or is active. Then the automatic stay takes effect. The landlord may not continue with eviction and collection but the consumer/tenant is given 60 days by the bankruptcy court to decide whether or not to assume or reject the unexpired lease. What if the consumer fails to make this decision in 60 days? By default, the lease is considered rejected. Can the tenant request for an extension of these 60 days? Yes Can the landlord dispute this extension? Yes, with the help of an attorney.
Posted on
June 4, 2009
at
6:02 am
Mister Miyagi, bankruptcy can affect your son's apartment hunting but if he can show the future landlord his apartment payment history--if he can prove that although he has bankruptcy on his report, that he was a good tenant, then he'd find an apartment just fine.
Posted on
June 4, 2009
at
6:08 am
If for example, by default, the lease is considered rejected, the landlord can then file a claim, in the bankruptcy court, on the tenant's unpaid obligations (if there were any).
Posted on
October 7, 2009
at
6:34 am
bankruptcy and apartment lease - it would be difficult to get a place if the consumer's credit report is bad-which is usually the case after bankruptcy. however, it could be cleaned up.
Posted on
October 7, 2009
at
6:39 am
A good question to ask now is - after bankruptcy, to ensure that it would not be difficult to lease an apartment, how should the consumer clean his/her credit report?
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