Renewing apartment lease during Ch 7?

[jetsfan2010]

I have my 341 tomm, and when I filed my 7, notice was sent to everyone, including the property management company I am renting from. My lease is set to expire on November 30th. Today I received a letter from the company giving me 60 day notice to move out. I will be calling them tomm informing them I want to renew my lease for another year, but have any of you had any issue regarding renewing a lease after you filed?

[justbroke]

The reason why you are getting a notice is because you probably didn't Assume the lease! The specific way to assume the lease is to first, list it on the Statement of Intentions that you will assume the lease. Next, you need to actually perform the procedural method in your District for assuming the lease. In my District, it's done by motion (Motion to Assume Lease)... and requires approval by the court.

I'm guessing that you either didn't list the lease on the Statement of Intentions or you have listed "reject". Additionally, there may be something else "affirmative" that you need to do, such as file the Motion to Assume Lease. Please be aware that a lease is automatically rejected (cancelled) as of the date of filing, if you fail to assume the lease or don't take any action within 45 days of filing.

Please speak with your attorney and ask about the assumption of the lease.

[jetsfan2010]

Thanks for the insight. I filed on 8/15, so today would be day 42. I will ask him what we need to do. I do remember seeing the lease listed on our statement of intentions, however that motion may be the key.

Can the property manager refuse to renew it for any reason related to the bk?

[justbroke]

Can the property manager refuse to renew it for any reason related to the bk?

If you rejected the lease in the Bankruptcy they can certainly demand that you vacate. Typically, leases can be broken by either the landlord or the lessee. I'm sure you'll get this straightened out. The management company probably thinks that you're rejecting the existing lease and is why they sent the notice to quit/vacate.

[jetsfan2010]

So an update
had my 341 this morning and it went rather smooth. I spoke with my lawyers office and they said that the property management company could ideally for any reason decide not to renew a lease, though they cant specifically use the BK as the only reason. He did say he has seen some clients have to find a new place in this same scenario. I put in a call for the prop mgr and am awaiting the call.

[justbroke]

I spoke with my lawyers office and they said that the property management company could ideally for any reason decide not to renew a lease, though they cant specifically use the BK as the only reason.

Actually they can... if you reject the lease in the Bankruptcy. Rejecting a lease in Bankruptcy is the same as being in default as of the date of filing.

[jetsfan2010]

Well I found out some info from the property mgr. They stated the owner of the property is getting a divorce and is moving back into the property, which is reason why she is not renewing the lease. It does however put me in a bind, as now I am back out looking to rent a place, with the BK on my credit report. Hopefully that wont cause any issues.

[justbroke]

A bankruptcy will only keep you from getting certain places. What a creditor/landlord really wants to see... is consistency in work and income, as well as absolutely NO evictions or late payments to other landlords. The truth is, that many management companies will work with you if you are open about it and you have the right income. For most rental management companies, you need to make at least 4 times the monthly rent (on a monthly basis). For some, it's 3 times the monthly rent.

Additionally, there are many more forgiving properties on Craigslist and other sites, where they are leased by the owner. I would be very cautious, however, with Craigslist and have you do your homework. Some people have ended up renting homes/apartments where the owner was either in foreclosure or bankruptcy! (My brother is a PERFECT example of this! He was bit by an owner who rented him a townhouse in Atlanta. The owner forgot to mention that he was not only in foreclosure, but that the foreclosure sale was about to occur! My brother was given a quit/vacate notice from the new owners!)

[jetsfan2010]

im sorry to hear that justbroke! That would be truly a nightmare! Thanks for the insight as well. This weekend I will be visiting some properties managed locally by prop mgrs. I will disclose to them the two times I was late this year(late being rent due 1st, and I paid on 8th)

[bcohen]

So you're renting an apartment in an apartment complex, and the "owner" allegedly wants to move into that apartment?! What a load of bull@#$%. Obviously, the management company is non-renewing the lease because of your bankruptcy.

[justbroke]

bcohen... it might just be condo. I have never known anyone to ever own an apartment (or townhouse), other than as part of a condominium association. Many people hire management companies to take care of their investment and rental properties. An owner can, based on the lease and the laws of the town, city, county, and/or state, usually end a lease with sufficient notice.

It's typically 60-90 days for a lease termination prior to the expiration of the lease. Also, most leases provide that at expiration, the owner has the right to not continue the lease.

Regardless, you can actually end a lease for reason of bankruptcy. Specifically, if the lease is not assumed or the debtor did not specify anything on the Statement of Intentions and assume the lease, then it is considered rejected and in breach as of the date of filing. A smart landlord would file with the Bankruptcy court and then proceed with eviction per the guidelines for the municipality.

[jetsfan2010]

for clarification - it is a condo that a prop manager handle for the owner. I personally dont think the owner is moving back but cant prove it either way. Ironically there are other properties in the neighborhood up for rent, and I have already spoken to a few prop mgrs/owners about the situation and my bk upfront. Only 1 said it would be an issue and refused to rent to recent BK. One said he would need 2 months up front(first month and last).

[bcohen]

...Regardless, you can actually end a lease for reason of bankruptcy. Specifically, if the lease is not assumed or the debtor did not specify anything on the Statement of Intentions and assume the lease, then it is considered rejected and in breach as of the date of filing. A smart landlord would file with the Bankruptcy court and then proceed with eviction per the guidelines for the municipality.

So is this standard operating procedure that an apartment complex would expect you to vacate merely because you have exercised your rights to relief under the Bankruptcy Code--even though you have never been late with rent or otherwise caused any problems? If I get sued, and therefore have to file, I do not want to lose my apartment, and I'm not sure anyone else is going to rent to me when I am an unemployed college student. I have lived here since 2007, never been late with the rent, never caused any problems, and always taken good care of the apartment. However, I know that when I originally applied I was specifically asked if I had ever filed for bankruptcy, so that may mean that this property management company takes a dim view of BK filers.

And BTW, this is a medium-sized apartment complex, not a condominium development where each unit is owned by a different person.

[justbroke]

So is this standard operating procedure that an apartment complex would expect you to vacate merely because you have exercised your rights to relief under the Bankruptcy Code--even though you have never been late with rent or otherwise caused any problems?

Forget about an apartment complex or management company; I would personally, as a landlord, do the same! You are talking about a material breach in the terms of the lease under both bankruptcy and non-bankruptcy laws. It's as if there is no lease and why would anyone put themselves into contractual jeopardy by not taking appropriate legal action?

If I get sued, and therefore have to file, I do not want to lose my apartment, and I'm not sure anyone else is going to rent to me when I am an unemployed college student. I have lived here since 2007, never been late with the rent, never caused any problems, and always taken good care of the apartment. However, I know that when I originally applied I was specifically asked if I had ever filed for bankruptcy, so that may mean that this property management company takes a dim view of BK filers.

I think you keep missing the point about "assuming" the lease. Under the bankruptcy code, you have to affirmatively accept the lease by stating your intention to do so in the Statement of Intentions and you must actually perform that action. (This could be done via a reaffirmation agreement or a more specific form that assumes the lease.)

And BTW, this is a medium-sized apartment complex, not a condominium development where each unit is owned by a different person.

It would not matter. A sophisticated management company would have dealt with many bankruptcies (as well as standard breaches of a lease). There are entire guides written about how a landlord should respond in a bankruptcy case in which they have a lease with the debtor. It's serious business, and so much so that there are many attorneys that have written about this topic.

[IamOld]

I know I'm showing my ignorance here but ifthe tenant reaffirms the leasewould landlord even be
On the mailing matrix?

Forget about an aapartment complex or management company; I would personally, as a landlord, do the same! You are talking about a material breach in the terms of the lease under both bankruptcy and non-bankruptcy laws. It's as if there is no lease and why would anyone put themselves into contractual jeopardy by not taking appropriate legal action?

I think you keep missing the point about "assuming" the lease. Under the bankruptcy code, you have to affirmatively accept the lease by stating your intention to do so in the Statement of Intentions and you must actually perform that action. (This could be done via a reaffirmation agreement or a more specific form that assumes the lease.):

It would not matter. A sophisticated management company would have dealt with many bankruptcies (as well as standard breaches of a lease). There are entire guides written about how a landlord should respond in a bankruptcy case in which they have a lease with the debtor. It's serious business, and so much so that there are many attorneys that have written about this topic.