Question about Renting Prior to BK

[phatman66]

Trying to pre-plan bk. Filing Chap 7 once we qualify for means test. Discharging all CC debt and underwater house, walking away. Of course we need a roof over our heads we are looking for a rental home and we are being up front about our situation when searching for a rental home. We found a house, the landlord seems to understand our position but is a little concerned because he does not know that much about bankruptcy. He ask me how he is protected, what's to stop me from adding him to the filing when I qualify and walking away. Good question, looking for some answers for him. I told him I was being honest with him about my situation and I would not do that, or my plan would not work. I told him I was looking for my fresh start and renting this house will help me and I plan on staying in the rental for 1 or 2 years until we get back on our feet.

What can I tell him? Is there a way I can make him feel comfortable? I have a lawyer and will ask him, but wanted to get some feedback from everyone.

[tcreegan]

Hi phatman,

Tell him you won't be moving in until after the BK. Stay in your house until it forecloses and bank the payments. The BK stops the foreclosure process for at least a couple months, and the foreclosure process adds in a couple months, and lots of places lenders are in no hurry to foreclose.
You might have a year or more of payment-free living. Thats a chunk of change, could pay security deposit, 1st, last, and couple months in between. That would make a landlord very comfortable....

Good luck w/ your BK plan,

Tom in Colo

[backtoschool]

You can reaffirm a lease if you want to. It is not required, but if you do not reaffirm the lease then you are no longer legally responsible for the lease after you are discharged. (you can still be evicted if you do not pay rent however).

If you really want that house, and want to rent it pre-bk, then you can tell the landlord you will reaffirm the lease as part of your bk. Everyone will advise against this however, because it ties you in. If you want to leave, or if you find that the landlord does not maintain the property, then if you have reaffirmed the lease, you will not have as many options for leaving the place, post bk.