Big Picture. I closed my business in Aug 09. Personal credit was used to try to stay afloat, locked into a lease etc...
I have a month to month lease with a tenant at a second home on the other side of my state. NC. I rented it in March 2010. I had to close my business 8 months earlier and as a result had for the first time in my life substantial credit card debt. There was a clause added to lease that the tenant would allow the home to be listed for sale and shown for reduction in rent. Tenant was also aware that I was struggling financially. I made the decision to file for bankruptcy on april 16th. I decided to surrender the house at that time.
Tenant was made aware that any rents going forward thru the bankruptcy would be paid to the trustee. I filed for Chapter 7. Tenant never paid the April rent, said sent but never got a check. Income from rental was included as part of means test for bankruptcy.
Tenant never put the Sewer service in his name, lease states that he must do this.
Sewer utility company was listed as a creditor. They are the only creditor that continued to send me an ever increasing bill, around 35.. per month increase. I asked them to shut the sevice off which would have also shut the water service off. They felt this might put them in contempt? I obtaind the discharge July 21. the trustee's final decree was issued july 26 as fully administered. I discovered that the trustee did not try to collect rents from the tenant. My attorney is suppose to be sending me the final report. I think I may also need proof that I included the rental income as part of my bankruptcy. I check to simple note that I have for the property. There is no assigment of rents clause and I have a special warranty deed on the property. I recently sent a 10 day pay or quit letter to the tenant. I sent an earlier letter just askin him to send money for the sewer bill. He did contact them earlier on per my request but decided not to pay the old bill then put the service in his name. I offered him a deal of just paying 2 monthys of rent 1000.00 and the utility bill by the 10 day period but also stated that I reserved the right to try to collect the full amount of back rent 3000.00 if I discovered that he has not paid any rent via the trustee and if this is a correct and legal action. I also included in the letter that this letter should be considered his 30 day notice to vacate in order to terminated the lease and disclose that foreclosure will happen eventually and that if he was interested that a new month to month lease may be availble as long as he was aware that foreclosure was going to happen. I did recently recieve a letter from the lender that as of oct. 16th if they did not recieve payment that they were going to accelerate the note. I contacted Bank of America bankruptcy division and told them the property was surrendered., They said they would stop the notices and that I did not own the propery and more and that I should not worry about anything, just let it run it's course.


Facts the tenant has been living in the house rent free for 6 months.
I quit paying the mortgage 6 months ago
Will i get stuck with a 300.00 bill and rising from the sewer utility who is also the town hall, going forward out of bankrutcy. This is my main concern.
Is it within mylegal rights to take the tenant to small claims court and seek payment for back rents and the sewer bill?
I have limited funds still and am accutually letting my primary home go also rather than reaffirming it, so will be looking for rental for myself soon. this one sent me a letter aof pre forclosure about a month ago.

Will the bank end up paying the sewer bill eventually when it goes into their name?

Should I take him to court for summary ejection and try to collect back rents and sewer bill. Is this legal? If so need to make the move right away.

Should I do it on my own, have done a few times or should I try to have a lawyer in the area do it for me possible with partial payment contingent of whether back rent can be collected?