Moving Out & Filing for Chapter 7

[jalex]

Hello,

My wife and I are filing for Chapter 7 on November 10th. We are currently renting an apartment that is way too expensive for us to maintain in the long run, given my recent reduction in income. We are in a lease with the place until January of 2011, and are current on rent payments.

Lawyer has told me that we can include the costs that would arise from the breach of the lease in the bankruptcy. What I haven't gotten an answer to yet is, when do we move?? Do we have to vacate before we file, after the lease is rejected by the trustee, or before the discharge? I'm planning on paying the rent for November, obviously, because I'm afraid they would have us out of the apartment before we filed otherwise. (Ruthless property management company, but that's another story...)

I don't want to live rent free or anything, we plan on moving our stuff out slowly during the month of November. I primarily need to know if we need to be out before we file. Also, would it be prudent to give the landlord the 30 day notice of intent to vacate when I pay the rent this month? Since we're breaching anyway, I don't want to cause any problems for us next month if I can help it...

Any insight/experience would be appreciated!

On another note, these forums are a wonderful resource, I've learned quite a bit by reading the threads on here.

[jalex]

Forgot to add...

We're living in California. That might help!

[whipster1]

Since you will be putting them as a creditor, they will get notice from the court. Paying for November is the right thing to do, and plan on getting out by the end of the month. I sure would not tell them before filing that you will be leaving, no telling what might happen.

[shabam]

I would highly recommend moving before your credit tanks.

Once you find a place, you probably should move and just add them as a creditor.

[leena]

I work in this field, and I say give them the notice and look for a place now. They cannot throw you out while you are paid up for November and you have given them the 30 day notice. Regardless of if you gave them notice, they are gonna know you are leaving anyway because as you look for a place, your current landlord is going to get requests for rental references. On those requests, there will be a question "completed terms of lease?" to which they will answer "No". Do NOT , make that whole rental reference situation worse by sneaking out of the current apartment. They call that a "skip", and it pisses landlards off big time. Not completing the terms of a lease is one thing, a cranky manager will gladly write "skip" on any requests for rental referance if you fail to give any notice and that will make your situation in future years in obtaining rentals worse.

If you level with your current Management company and tell them you are leaving in 30 days because you simply cannot pay for the place anymore, they will no doubt still charge you any fees associated with breaking the lease (the fees you are filing on) but they will appreciate your honesty and you will not compound the rental referance problem.

[jribe]

question

did your lawyer say if you will lose your security depost with them?

I was actually thinking of doing the same thing; our rent is half my income right now- yikes! But if we lose the security deposit- moving is basically a wash for us...


As far as your post- i would pay Nov, and be out by Nov 30. Start looking for another apartment/rental before you file if you can. There's a lot of places that don't want to have a BK - or simply won't rent to you if you've had a recent BK. Not sure what part of CA you're in - but we saw that a lot.

[frogger]

I work in this field, and I say give them the notice and look for a place now. They cannot throw you out while you are paid up for November and you have given them the 30 day notice. Regardless of if you gave them notice, they are gonna know you are leaving anyway because as you look for a place, your current landlord is going to get requests for rental references. On those requests, there will be a question "completed terms of lease?" to which they will answer "No". Do NOT , make that whole rental reference situation worse by sneaking out of the current apartment. They call that a "skip", and it pisses landlards off big time. Not completing the terms of a lease is one thing, a cranky manager will gladly write "skip" on any requests for rental referance if you fail to give any notice and that will make your situation in future years in obtaining rentals worse.

If you level with your current Management company and tell them you are leaving in 30 days because you simply cannot pay for the place anymore, they will no doubt still charge you any fees associated with breaking the lease (the fees you are filing on) but they will appreciate your honesty and you will not compound the rental referance problem.

Excellent advice!

[jalex]

did your lawyer say if you will lose your security depost with them?

My lawyer didn't specifically say anything about the security deposit. Since we are breaking our lease, I would assume that they would use our security deposit to pay off some of their "damages". Unless the trustee takes it from them. (I believe the deposit becomes part of the bankruptcy estate once we file.) Either way, I'm not going to see a dime of it.

I had written off the security deposit anyhow. We learned (after we moved in) that this place is one of those kind of places where it doesn't matter how clean your apartment is, they will use every penny of your deposit. Have a pet? Oh, well, the whole carpet in the entire apartment needs to be replaced, automatically. Unless you take them to court. They basically try to strong arm people that don't know their rights out of their money, until you start pitching a fit, then they usually back down.

I'm not going to go out of my way to cause them problems, but I'm sure not going to waste any time feeling sorry for them, or guilty for moving out on such short notice!

Besides, maybe the mice that have taken over our building will start paying rent? They've had a harder time evicting the mice than they ever would trying to evict us...

[debbie42]

My opinion is that it's in your best interest to rent a new place before your credit takes a big hit and before you file BK...best chance of getting in somewhere you want and at a lower rate, etc. if you secure your new place before all the 'bad stuff' starts happening! Good luck to you both!