Bankruptcy and Rent Related Questions
Can an Individual Include his/her Rental Agreement on the Statement of Intention while Filing for Bankruptcy?An individual may not include his/her rental agreement on the statement of intention while filing for bankruptcy. The statement of intention is not meant for real estate property like apartments. It is meant for personal property. Hence, only property like automobiles and other personal property may be included in it.
What would happen to a Lease Agreement if the Tenants of an Apartment filed for Bankruptcy?The tenants of an apartment may cancel the lease after filing for bankruptcy. This means that the tenant may not have any personal liability towards the lease and the agreement would be null and void. If there is a clause in the lease that the owner of the apartment may deduct any damages from the security deposit in case of early termination of the lease, then he/she may deduct damages if any, and return the remaining security deposit to the bankruptcy trustee.
Would the Landlord of an Apartment be Notified if his/her Tenant filed for Bankruptcy?The landlord of an apartment is normally notified if the tenant files for bankruptcy only if the tenant is behind on lease for the apartment, and the landlord gets listed as a creditor on Schedule F. If the lease and the landlord are listed on Schedule G, he/she may not be notified of the bankruptcy filing.
Can the Landlord of a Property force the Tenant to Vacate the Property after the Tenant Files for Bankruptcy?The landlord of a property may not force the tenant to vacate a property after the tenant files for bankruptcy if the tenant continues to abide by the lease contract and pays the rent on time.
Would Rent that is Accumulated after the Tenant Files for Bankruptcy be Discharged in the Bankruptcy?Any debt that would be accumulated after the bankruptcy is filed may not be discharged in the bankruptcy. Hence, the rent may not be discharged in the bankruptcy if it is accrued after the tenant files for bankruptcy. The landlord may sue the tenant in a state court for any rent amount that is unpaid after the bankruptcy is filed.
What can an Individual do if he/she forgets to add his/her Landlord as a Creditor when Filing for Bankruptcy?If an individual does not add his/her apartment rent as a creditor and does not include his/her landlord as a potential creditor while filing for bankruptcy, then the rent may not be discharged in bankruptcy. In some situations, if the bankruptcy was not closed too long ago, the individual may ask his/her bankruptcy attorney to re-open the bankruptcy case to include the landlord of the apartment.
Filing for bankruptcy may not be an easy task. It may involve a lot of steps and aspects that an individual needs to pay attention to. Apartment rent and rental agreements may be just one such aspect. Once an individual knows how bankruptcy may affect his/her rent, it can become easier for him/her to decide if he/she wants to add the rent in the bankruptcy petition or not. He/she will also know what could happen to his/her rental agreement if he/she files for bankruptcy. When you are not sure or have doubts about your rent and its impact on bankruptcy, it’s always wise to ask an Expert.