Rental income after filing but before 341 and after 341

[bk883813]

I have 15 rental properties. I filed on 11/09/09. My 341 meetign is 12/21/09. I have notified all tenants of the BK. Some are still insisting on sending me rent monies. I have set aside the money in an account to turnover to the courts.

1. Am I required to disclose these monies?
2. What about rents recieved after the 341 meeting?

THanks!

[justbroke]

Your case is probably beyond what most here will ever experience. You have 15 real properties and the answer will depend on what your intentions are. I'm assuming, since you're asking about rents and who gets them, that you're surrendering the properties.

The Trustee will decide which properties they want to keep for liquidation, and which ones they'll abandon. Depending on what they abandon, the creditor rights (assignment of rents) may come into play. It's anybody's guess.

Your case is too specialized to give any absolute answer. If your attorney isn't providing you with the information you need, please be more aggressive in pursuing a qualified response.

You are doing the right thing by setting aside the rent payments that you have received post petition. You'll have to work with your attorney on the Trustee's disposition.

[bk883813]

Thanks. I have surrendered all properties, inc primary. None of the properties have equity and 1/2 are still occupied. It is a tough one, as I haven't gotten a straight answer concerning the continued maintenance of the properties...etc...My trustee suggested the special account for funds received to handover to the trustee. But should this be suggested to the trustee or wait to be asked? I have no creidtors disputing and ALL have filed a motion for relief from automatic stay. Only one has exercisised the assignments of rents.

[justbroke]

My trustee suggested the special account for funds received to handover to the trustee. But should this be suggested to the trustee or wait to be asked?

I think you meant to write "my lawyer suggested..." I would just hold the money (because it's all post-petition anyhow). You'll have to see if the Trustee asks about the rents collected. More than likely, the Trustee will abandon the property since there's no equity.

A further indication that the Trustee isn't interested, would be for the Trustee to have filed a Consent when the Motions for Relief From Stay (MRFS) were filed! The Trustee can't have it both ways.

I wouldn't say anything unless asked specifically about rents. You may find out that this is never brought up, and after discharge, the rents are yours.

I have no creidtors disputing and ALL have filed a motion for relief from automatic stay. Only one has exercisised the assignments of rents.

Smart creditor!

[bk883813]

Thanks for the input.

[frogger]

I wouldn't say anything unless asked specifically about rents. You may find out that this is never brought up, and after discharge, the rents are yours.

I agree. But to be on the safe side, set the money to the side in case you need to pay it back.

I've got one lender that exercised the assignments of rents, but you can bet your last dollar that I took every dollar I could in rent before I was notified.

Now, I don't take anything on that lenders property. I also gave them the property back. If they're going to collect, they can deal with the problem.

The other lenders have not exercised the assignment of rent clause, but I'm making sure I have the money available if needed to pay anyone back.

Good luck!

[bk883813]

Frogger..You kept the rents after filing?