We rent. Does law require our LL to be in creditor matrix?

[pileated]

Our house was foreclosed on and we had to move to another state for work. We rent a house. We got lucky and were able to do so without having to undergo a credit check.

The BK forms required my husband to list our landlord's name and address since we have a lease.

The lawyer listed the landlord in the creditor matrix even though we are about to sign a new lease with our landlord.

I am upset about this. I don't want our landlord to know our personal business. We are good tenants, take great care of the property, and pay our rent on time. We get along well with our landlord.

I called the lawyer and he said that the law requires him to include our landlord in the creditor matrix.

Does anyone know whether this is true?

Thank you for your help,
Pileated

[ROB37LAW]

If your lease is not going to be assumed by the bankruptcy then it is not included in your creditor matrix. I rent and my complex has no idea i filed bankruptcy. I just continue to pay the rent on time.

[music12]

try asking other lawyers. some may be willing to bend the law for you a little. for example, technically i was supposed to put my student loans in my petition, but i really didn't want to tell my alma mater that i am filing bk! so, since this student loan wasn't going to be discharged anyway, my lawyer just gave me back the student loan statement and never put it in the petition. so the law was bent a bit, but certainly no harm was done to anyone.

in your case, regardless of what the law says, your landlord doesn't need to know. you pay rent and you are allowed to pay rent during bankruptcy and nobody can fault you for that. i'd look for another lawyer who is more flexible.

[pileated]

Thank you for your help. My husband is going to talk to the lawyer about this again. Hopefully, the lawyer will file the BK papers this week and our landlord will not receive notice. It's too late to get another lawyer. We just found out about this.

Pileated

[MSbklawyer]

It is required. Schedule G requires you to "describe all unexpired leases of real or personal property." That includes your house lease.

The declaration requires you to declare under penalty of perjury that the schedules are true and correct.

To omit your apartment lease is to commit perjury.

Will it ever amount to anything if you do not list it? Probably not. But you need to go into it with your eyes open.

[music12]

well, MSbklawyer, what is the reason behind the requirement?

[cupcake]

My experience:

When I filed last year, I listed my apartment lease in the papers I gave my attorney. I asked if there was any way to keep my apartment complex from knowing of my BK and my attorney told me to make a note on the paperwork that I wanted them suppressed from the matrix. I still provided my attorney and the trustee a copy of my lease but they were not included in my matrix and never received notification.

[justbroke]

what is the reason behind the requirement?

This is because the bankruptcy code causes all unexpired leases to be automatically rejected if the Debtor fails to assume them within 45 days of filing. If you never notified the lessor then they have no capability to do anything about this. You can then just walk away and they would be sitting there looking dumbfounded.

A lease is a contract, and the Bankruptcy Code allows the lessor to consider the contract to be in breech the day before filing the bankruptcy, if the lease is either rejected or not assumed by the debtor. This would allow the lessor to take appropriate steps to protect his/her interest in the leased property.

Yes, some attorneys will suppress them from going on the Creditor's Matrix. If you're assuming the lease, by declaring so on Schedule G, then this could be a fair thing. However, if you're rejecting the lease or have not indicated on Schedule G your intentions, you need to put them on notice by including the landlord/lessor on the Matrix.

[pileated]

What information about my husband's BK does the landlord receive if the LL is listed on the matrix?

We are assuming the lease. We live in this house with our 4 kids and we have no money to move again.

If the LL does not keep the information he receives confidential, this will be the talk of the town.

I'm worried. My husband is filing this week, and next week, I renegotiate our residential lease.

[MSbklawyer]

well, MSbklawyer, what is the reason behind the requirement?

What JB said. With one caveat: The leaseholder is a party in interest. So whether the debtor is assuming the lease or not, as a party in interest, the leasholder has to get notice of the proceedings.

[music12]

if you are about to sign a new lease, what's the status of the prior lease? is it still in effect? if not, the whole question is moot.

MSbklawyer, can the LL object to someone assuming the lease?

[ForumReader]

Hmm, when I filed for BK, I asked my attorney about my lease and he said it was not necessary to list my landlord on my credit matrix as long as I have been paying rent on time. He did advise me to be upfront with my landlord which I did, no problems.

Now, I am not sure about very new rental leases that are about to be signed and one filing for BK, that may have to be listed.

[pileated]

if you are about to sign a new lease, what's the status of the prior lease? is it still in effect?

The current lease ends June 1. The terms of the lease require it to be renewed by April 1. We plan to renew for a 2 year term.

[spanky]

Wow, this is the first time I've come across this issue spelled out so clearly. Even the Nolo book doesn't mention it. Is this something that trustees are looking for?

[justbroke]

Wow, this is the first time I've come across this issue spelled out so clearly. Even the Nolo book doesn't mention it. Is this something that trustees are looking for?

Trustee's couldn't care less, unless the debtor is the landlord/lessor and the Trustee can make some money from leasing the property until it's sold.