Do I give up everything when I file a suggestion of bankruptcy?

[justbroke]

Yes JustBroke I pointed that out earlier he just doesn't want to accept what I said .

Sometimes it needs to be said twice, by two Gurus.

[Bell30656]

How is it unethical to collect rent when you are not paying the mortgage? The two have nothing to do with each other. The rent is paid to provide for a service, in this case a place to live for the month. The tenant receives this service.

This objection that it is unethical, illegal, immoral or whatever is ludicrous. That would be akin to saying you should drive the car if you haven't made the payment... You shouldn't eat the groceries if you haven't paid the VISA bill that you used to purchase them...

I believe the OP has went beyond his obligations when he discussed it with the tenants. There was no obligation on his part to do this. Landlords file bankruptcy all the time. Many large landlords go though a CH11 reorganization, do you think they send the rent back?

The OP actually has an obligation to continue collecting the rent. If he did not collect the rent it could easily be said that he is giving away the services of the company and not doing everything in his power to help keep the bankruptcy estate solvent. As Frogger said, the trustee is probably going to ask for this money. If you tell him/her that you didn't bother to collect it... Well, I don't think that will go over too well.

[AngelinaCatHub]

I don't know why anyone hasn't caught this, but those dates just will NOT work. The foreclosure sale date is 1/22/2010, so filing after that date, would not prevent the foreclosure.

You cannot file a "suggestion of bankruptcy" unless you have actually filed a petition with the Bankruptcy Court. Although it would appears, at first glance, that a suggestion of bankruptcy is not actually a bankruptcy, you do actually have to file and have a pending bankruptcy!

So, you'd have to actually file the Bankruptcy Petition (not a "suggestion", but an actual petition with the U.S. Bankruptcy Court) before 1/22/2010... and immediately contact the lender's foreclosure attorney and the Circuit Court with the "suggestion" of bankruptcy... including the case number.

Well it seems our host is attempting recovery the best we he knows how. The Suggestion of bk (as you well know) is legalese as the bk is/has not been consummated. It is basically for those holding court cases in progress but does go out to the Matrix. He cannot write his own unless in a personal letter, and has no legal powers of any kind.

If he is not careful, he will Eef his bk as the Trustees are far sharper than we are and know what to look for. Also, he would be collecting his February rent after the houses sold????? That in no uncertain terms is larceny plain and simple. 'hub

[frogger]

As Frogger said, the trustee is probably going to ask for this money. If you tell him/her that you didn't bother to collect it... Well, I don't think that will go over too well.

I think that I'll quote you quoting me........

I collected December rent money and am keeping it, due to the fact that I had not filed. At that time, I had not made my property payment either. That money has been spent maintaining the property, paying landlord supplied utilities, lawn care, etc.

I turned over all of the properties that were financed by one lender back to that lender a couple of days before filing bk. All money, and all problems, have been going to that lender since.

I still have properties financed by another lender that I still have possession of. January rent is starting to come in, and that money is going into a bank account at that lenders bank that had been emptied out. The only thing that is going into that account is that lenders rent money, and any expenses that I have to pay are going to be paid out of that account.

I will give all funds in this account to the lender and/or trustee if asked. I do expect to be asked, but if not, I'll be glad to keep them.

As I still have possession of the property, it is my responsibility to do the prudent things to insure that the property, the lender, and the tenants are protected.

[AngelinaCatHub]

How is it unethical to collect rent when you are not paying the mortgage? The two have nothing to do with each other. The rent is paid to provide for a service, in this case a place to live for the month. The tenant receives this service.

This objection that it is unethical, illegal, immoral or whatever is ludicrous. That would be akin to saying you should drive the car if you haven't made the payment... You shouldn't eat the groceries if you haven't paid the VISA bill that you used to purchase them...

I believe the OP has went beyond his obligations when he discussed it with the tenants. There was no obligation on his part to do this. Landlords file bankruptcy all the time. Many large landlords go though a CH11 reorganization, do you think they send the rent back?

The OP actually has an obligation to continue collecting the rent. If he did not collect the rent it could easily be said that he is giving away the services of the company and not doing everything in his power to help keep the bankruptcy estate solvent. As Frogger said, the trustee is probably going to ask for this money. If you tell him/her that you didn't bother to collect it... Well, I don't think that will go over too well.

I see your reasoning Ms. Bell, but it is not like he has stopped paying his own resident payments. This is admittedly a business and he is transferring what he is NOT paying on one mortgage to pay on another. this is working the system. Without an agreement from the mortgage company for him to keep up the places, he is profiting albeit not as much as necessary. This is a fine line that could be taken more than one way by rewording it. He needs a lawyer. He also wants to collect rent in February when the real property will be sold on January 22. Does not compute and is illegal.

I have no axe at all to grind with a person I don't even know, only on the information he supplied. It is ripe with questions of all those nouns you just used in your post. He is paying with funds on other houses. What do you think will happen when he files bk? They will also be sold to pay his discharged debt.

Belle there are too many inconsistencies in his "question and information".

One more important thing: We are not certified to practice law. Most everything here is experience driven and given freely of time and wisdom whether good wisdom or not. An answer was submitted and the submitter was personally attacked and maligned. Being the submitter was one of our very best contributors, with IMO sound answers, he was hit on derogatorily, for his good deed. This should offend all members, particularly those who now attempt to give answers and not ask questions.

This is only my opinion as all that is said on this forum is opinion. 'Hub