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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I have a date of 9 Nov for hearing on Chapter 7 that I expect

Resolved Question:

I have a date of 9 Nov for hearing on Chapter 7 that I expect to be recommended to the court of the county for approval. The main reason was 4 rental homes that has decreased 38$ in value and 25% down in rental income.

I have confirmed that I can continue to collect rent from the tenants until the homes are foreclosed upon and taken over by the fiance company .

My questions is: Does this same right apply to pending Chapter 7. Can I continue to request rent from the tenant until my Chapter 7 is approved by the court or do I give up that right on 9 Nov or keep it until the foreclosure order is produced by the county court.??? Di I have eviction request authority now pending the Chapter 7 on the tenants for not paying. I am loosing about 60K as it is and would of course like to draw the rent as long as possible,. I have reduced their rent by 20% now for 3 months already but they say I have committed fraud for collected the rent knowing I have filed for Chapter 7 but the Chapter 7 is not finalized yet and I understand I still on the homes till they are foreclosed upon.
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.
Hi JACustomer,
Did you include the rent as income in your Bankruptcy petition?
Customer: replied 5 years ago.
No because my chapter 7 attorney says that because I owe money on the homes (Mortgage) that it is not considered income for Chapter 7 reasons
Expert:  cfortunato replied 5 years ago.

As the automatic stay does not apply to the collection of rent, you absolutely can continue to collect the rent from your properties. In fact, the stay never applies to the Bankruptcy debtor (filer), only to those who have claims against the debtor - such as credit card companies and mortgage companies.

Here is the relevant Bankruptcy Code section:


I think this is what you wanted to know. If not, please let me know.
Thank you!


Customer: replied 5 years ago.
The us code is long and hard to understand to me as a layman. At what point do I got to stop requesting the rent? I assume it be the date the court orders the Chapter 7 to be finalized (the date the Chapter 7 is ordered and adjudged) ??????
Expert:  cfortunato replied 5 years ago.

You are allowed to collect the rent for as long as you own the properties - until they are sold in a foreclosure sale.

Your Bankrutpcy has no bearing on whether or not you can collect the rent. You are allowed to collect the rent in spite of the Bankruptcy, and there is no point in the Bankruptcy process when you can no longer collect the rent.


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