Apartment Rental Agreement Clause

[tookie708]

Hi - There is a clause in my apartment rental lease that says:

“in the event Tenant is adjudicated bankrupt or makes an assignment for the benefit of his creditors, this Lease shall, at the option of the Landlord, cease and determine and said premises shall be surrendered to Landlord, who hereby reserves the right, in either of said events, to forthwith reenter and repossess said premise”

If I am current on the rent can they make me renew the lease when I file or make me go month-to-month or simply say bye bye.

As I right now I'm not current - have not been current in quit a while, but they always get the $$$ with a late fee. Working on getting it current and paid on the first of the month.

Recently spoke to an attorney and he told me get current on the rent and then let's talk about filing.

[tookie708]

Hi - There is a clause in my apartment rental lease that says:

“in the event Tenant is adjudicated bankrupt or makes an assignment for the benefit of his creditors, this Lease shall, at the option of the Landlord, cease and determine and said premises shall be surrendered to Landlord, who hereby reserves the right, in either of said events, to forthwith reenter and repossess said premise”

If I am current on the rent can they make me renew the lease when I file or make me go month-to-month or simply say bye bye.

As I right now I'm not current - have not been current in quit a while, but they always get the $$$ with a late fee. Working on getting it current and paid on the first of the month.

Recently spoke to an attorney and he told me get current on the rent and then let's talk about filing.

I forgot to include the the attorney told me that the landlord will be notified of the BK filing since he is a creditor.

[Nicollette]

I forgot to include the the attorney told me that the landlord will be notified of the BK filing since he is a creditor.

Is the landlord a creditor because you are including them in your filing?

[tookie708]

Is the landlord a creditor because you are including them in your filing?

I plan to have the rent caught up and current when I file. An attorney I last spoke with told me that they would have to be listed as a creditor since I have a lease/contract with them and owe them the remaining rent through June. It didn't sound like I have a choice in the matter. I'm concerned if I am current what the clause means in the lease and what will be next. I can't afford to move right now.

[free2breathe]

It's impossible to say what your landlord will do. They certainly can ask you to move if you aren't up to date when you file. That is why they have that clause in the lease. If you are up front with them, get caught up, and explain your situation, you might find they will be willing to keep you as a renter. I can understand why these clauses are added to leases, as the owners do need to protect their own behinds. It's just a shame when we are at our lowest that we end up having to face such things. I would say definitely get your rent paid up to date, and then talk to your landlord. Be up front and maybe you'll find a compassionate landlord underneath that lease

[Nicollette]

This reason I asked was because when I filed I don't think my apartment complex was notified, but my rent was current. If they were notified, they never brought it to my attention. They are alot of people out there that live in apartment complexes that end up filing BK, like myself.

[tookie708]

It's impossible to say what your landlord will do. They certainly can ask you to move if you aren't up to date when you file. That is why they have that clause in the lease. If you are up front with them, get caught up, and explain your situation, you might find they will be willing to keep you as a renter. I can understand why these clauses are added to leases, as the owners do need to protect their own behinds. It's just a shame when we are at our lowest that we end up having to face such things. I would say definitely get your rent paid up to date, and then talk to your landlord. Be up front and maybe you'll find a compassionate landlord underneath that lease

Thanks free2breathe - I agree with you. I understand that they need to protect their behind. I also plan to be up front with them when I am caught up. I've been laying low and they have not bothered me. They know I am unemployed and have been able to work with my husband and I...we are both on the lease. We have been warned that the rent will be increasing "significantly" when the lease is up at the end of June - they have yet to give a number, but looking a the place a few doors down that was recently for rent it's about $700 more. I'm thinking of separating from my husband in the near future and just am concerned if they boot us out now where are we going to go.

[OhioFiler]

This reason I asked was because when I filed I don't think my apartment complex was notified, but my rent was current. If they were notified, they never brought it to my attention. They are alot of people out there that live in apartment complexes that end up filing BK, like myself.

Your filing was incorrect. Schedule G is specifically for such agreements. It obviously wasn't an issue as you are nearly free! Congrats!

[pikaroth]

Has anyone ever had an issue with his or her apartment during bankruptcy? Until I read this thread, it did not even cross my mind, not one time. I just moved in to a new apartment in July of last year with a two year lease, and it never occured to me that my BK may cause issues with that. I pay every month, never been late, never will be late. But they will be notified of my BK? Wow. Something else to worry about that never even crossed my mind for a split second.

[daylate]

This is one of just about any topic that if you ask you will receive a bunch of different answers to. Just last week I was told that "we won't list your landlord because you are current therefore they are not creditors" (and i think this means they won't be notified) but then OhioFiler mentions that it should be on Schedule G. My guess is that if you are current they aren't going to say anything. I was also told by a diferent attorney that if i wanted out of my lease we could list them and have it "discharged' so as always my guess is that the real answer is "it depends on your attorney, your landlord and the district in which you file"

[tookie708]

This is one of just about any topic that if you ask you will receive a bunch of different answers to. Just last week I was told that "we won't list your landlord because you are current therefore they are not creditors" (and i think this means they won't be notified) but then OhioFiler mentions that it should be on Schedule G. My guess is that if you are current they aren't going to say anything. I was also told by a diferent attorney that if i wanted out of my lease we could list them and have it "discharged' so as always my guess is that the real answer is "it depends on your attorney, your landlord and the district in which you file"

Thanks - I will check with the attorney as it can be very confusing. Will get current before I fill but fear that since we have not been current since my unemployment ended May 2010 there are not too happy with us. Like I said they always get their $$ and with a late fee. My guess is when you sign a lease it is a contract that states the total amount due in total for the entire 12 months. If I don't abide by that agreement they can sue me in landlord/tenant court for the money due to them.

[pikaroth]

Well, I feel a little better. I did not call my attorney (yet), but I did get out my entire lease agreement and read it over twice. Nowhere at all does it even mention bankruptcy. The only item I could even find was this, "CREDIT REPORTS: We have the right to obtain credit and any other reports on you, that we may deem appropriate until all of your obligations under this lease are fulfilled. Upon your written request, we will inform you of the name and address of each agency from which a credit report is obtain. We have the right to report to others our credit and other experience with you." That's all th eentire lease agreement says that even comes close to any of this, and even that is fairly vague.

So, having gone through everything, I see nothing about BK anywhere, and when I sat down with my attorney and did my packet so they could get the paperwork filed, they never asked once who the management was where I was renting or even what complex I live at, just an address and how much my monthly rent is. Given that, and given the actual lease agreement, I believe I have nothing to worry about, but how quickly that can change! Sigh.

[Nicollette]

Your filing was incorrect. Schedule G is specifically for such agreements. It obviously wasn't an issue as you are nearly free! Congrats!

You say my filing was incorrect? I didn't say my apartment complex was not notified. I had said, if they were notified, they never brought it to my attention.

[frogger]

As long as your landlord is being paid, and being paid on time, you won't have a problem with them. This language is placed into the lease to try and help the landlord protect themselves by not having a property tied up in bk that they are not getting money for.

Let them know what is going on, pay them promptly, and they will have no problems with you.