Signed a lease but did not move in because we are filing bankruptcy, what will happen?
We signed a 1 yr lease to rent a house we have not even paid the deposit or any thing, and we decided not to move in. We filed bankruptcy and the landlord now wants some money out of us, but we have none. I have found online where it says that you can choose to end a lease or assume it. So choosing to end it, do I owe her money? I gave her 2 week notice that we were not going to move in like we agreed. If she sues me, for the amount of the rent for one year can it be dismissed in the bankruptcy? We decided to stay w/ parents to save our money to pay for the bankruptcy it seems we are too broke to go broke!
Posted June 24th, 2010 in When To File Bankruptcy. Tagged: bankruptcy, landlord, money, parents, yr lease.
You have been given very sound advice to include this landlord in your bankruptcy filing.
When you file bankruptcy, you will report to the court all unexpired leases. You have the option at that time whether to continue the lease or to cancel the lease. You will of course be canceling the lease.
I do have a question as to why you have signed a lease when you haven’t paid the security deposit. I also question the landlord’s motives behind this as well. If the validity of your lease is dependent upon the appropriate security deposit being paid, it is likely that the contract is void anyway. Speak to your bankruptcy attorney about this.
June 24th, 2010 at 11:48 pmIt doesn’t matter what he wants. Once you file for bankruptcy, he’ll have to form a line with your other creditors and wait to get paid.
Bankruptcy doesn’t excuse all your debt, but it does mean people can’t sue you easily or set a debt collector on you.
June 24th, 2010 at 11:48 pmMake sure to list the landlord in your schedule of creditors and any lease agreement will be discharged.
** Note: The above is a general discussion of the subject matter of your question and not legal advice. Local laws or your particular situation may change the general rules. For a specific answer to your question you should consult legal counsel with whom you can discuss all the facts of your case. **
June 24th, 2010 at 11:48 pmMake dure you include the landlord in your banckruptcy petition. Once it is filed, an automatic saty is issued to all listed creditors. They can not pursue any collection at that point. If you get your discharge, any money owed to her would be included.
June 24th, 2010 at 11:48 pmAlso, don’t make any agreements with her outside of the bankruptcy filing and discuss this with your lawyer.