Lease questions.

[cosmicmama]

I have questions about my lease. I own a home, which is in arrears, and I am in the process of filing 13. (The attorney has my package and my money). I moved away from my hometown and rented out my house, and now am three months into a year long lease out on the beach. The cost of living is high here, and my husband has been unable to find a job out here. To top it off, my best friend was diagnosed with cancer this past week and I really want to go back to my hometown and be nearer to her. I have not fully decided though, whether to stick it out for the year here or go on back and default on my lease.

My question is, at what point will it be too late to get out of the lease? If I decide to stay in it right now, but then in a few months (after my hearing) feel the need to move back, is it too late to include it in the bankruptcy? Or am I under BK protection for old debts (and is the lease considered an old debt) for a while? I need to know how quickly I need to be making the decision to stay in this lease or not.

Same goes for the property manager that is handling my rental property. The tenant is on month to month, so I can give them 30 days notice and get them out so I can move back in....but my property management agreement isn't up until August, and if I cancel the agreement prematurely, there is a $1000 fee. If I wait a few months after I have already had my BK hearing and decide to cancel that agreement, I'm I protected from having them come after me for that $1000?

Thanks in advance.

[justbroke]

My question is, at what point will it be too late to get out of the lease? If I decide to stay in it right now, but then in a few months (after my hearing) feel the need to move back, is it too late to include it in the bankruptcy? Or am I under BK protection for old debts (and is the lease considered an old debt) for a while? I need to know how quickly I need to be making the decision to stay in this lease or not.

You can simply reject the lease as part of your Chapter 13. You would also need to move out quickly!

Same goes for the property manager that is handling my rental property. The tenant is on month to month, so I can give them 30 days notice and get them out so I can move back in....but my property management agreement isn't up until August, and if I cancel the agreement prematurely, there is a $1000 fee. If I wait a few months after I have already had my BK hearing and decide to cancel that agreement, I'm I protected from having them come after me for that $1000?

You can BK that fee by listing them as a creditor. Are you intending to keep the house?

[cosmicmama]

You can simply reject the lease as part of your Chapter 13. You would also need to move out quickly!

You can BK that fee by listing them as a creditor. Are you intending to keep the house?

So you are saying that I need to reject the lease now? That was my question...if I delay making the decision to move, and want to reject the lease later, can I do that?


Yes, I am intending to keep the house, and live in it when I move back to my hometown. BTW, the mortgage is half what I'm paying for rent out here at the beach. (I have a full time job here at the beach, but I'm a nurse and can easily get my old job back if I go back).

[justbroke]

So you are saying that I need to reject the lease now? That was my question...if I delay making the decision to move, and want to reject the lease later, can I do that?

If you're filing Chapter 13, you have until confirmation to Reject an unexpired lease. YOu reject the lease as part of your Chapter 13 Plan (if your District allows lease rejection by Plan), or by motion.

Yes, I am intending to keep the house, and live in it when I move back to my hometown. BTW, the mortgage is half what I'm paying for rent out here at the beach. (I have a full time job here at the beach, but I'm a nurse and can easily get my old job back if I go back).

I did exactly the same thing. I moved out, rented a new house, filed and then realized I wanted my home. I did an appraisal decided to strip the 2nd mortgage and now I'm back in my home. I rejected the lease on the rental home!

[cosmicmama]

I called my attorney's office to ask about this. I feel I need some sort of counseling or advice from them. The paralegal still didn't answer my question, instead sounded kind of short with me and told me I need to decide before they will even file my case. Also, she said "it will be sometimes in December before we're ready to file anyway." I turned in my package and money to them on November 5. I've got foreclosures and tax debts looming over my head, not to mention the countless collection calls I get everyday. Is it normal for them to take a whole month to get everything ready to file?

[WhattaMess]

I can't speak to what is normal or not but when I filed in Indiana I almost felt rushed by my attorney to get it filed. I had my initial consultation with then mid to late September and they really pushed to file by October 1, which we did. In hindsight I am glad it happened this way because it got us confirmed quickly and on our way to... well whatever we are on our way to, but it sure beats where we were. Hang in there and when it is finally filed and over you will feel a sense of relief. Good luck.

[justbroke]

Is it normal for them to take a whole month to get everything ready to file?

For a "non-emergency", 4 weeks seems to be about average. Especially for a Chapter 13, since the Plan does require work.

As far as the lease rejection... as I stated before, some Districts allow the lease to be rejected as part of the Plan. Since your Chapter 13 isn't an emergency or "skeletal" filing, the Plan will be submitted with the Chapter 13 petition. Therefore, you would need to know the disposition of your unexpired leases and executory contracts, before filing.