If my landlord is filing Chapter 7, will it effect my lease?

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If my landlord is filing Chapter 7, will it effect my lease?

It is a business bankruptcy and the rental house is not involved directly. However, he has personal guarantee loans for the business.

Asked on September 23, 2011 under Bankruptcy Law, Alabama

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

It may be considered an asset of his bankruptcy estate and therefore, it may impact your lease ultimately. The new federal laws preclude you from being evicted I believe less than 90 days from eviction date but ultimately the best thing to do in your situation is consult with your local or state consumer protection agency about tenant rights and in particular, tenant rights during a bankruptcy. If your landlord is just now beginning the process of bankruptcy and you have not been formally notified as a debtor (i.e., you still owe the money in a legal tenancy), then keep paying your rent and make sure you have proof of payment (pay by check to the landlord so you can track it being deposited). If the trustee eventually takes over to review assets and debts, the trustee may wind up contacting you and requiring you to pay those rental payments directly to the trustee's trust account for the bankruptcy claimant.


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