rental agreement and bankruptcy

[adaughter]

the lawyer just notified me that when we do go to file for bankruptcy that the rental company we pay rent to for my parents will be notified...I am scared will they will try to evict them or end the rental agreement or raise their rent? they have never paid a month late or anything. Has anyone else worried about this?

[Tbornetun]

Why are they being notified? What does it have to do with your bankruptcy??

[adaughter]

Why are they being notified? What does it have to do with your bankruptcy??

I know exactly well I mean this is my parents bankruptcy...but why would the rental agreement have anything to do with the bankruptcy right?

[biggomez777]

Unless you are listing your landlord/rental company as a creditor. They should not get a notification.

This is, of course, if they are simply a landlord/rental company. If this is a retirement home/care type situation(as you said, your parents, so I have no idea on age/health) I don't know about that one. I would not think they would have any reason to know, but that's more murky to me.

[Tbornetun]

I don't see any reason why they should be notified. I wouldn't worry about it as long as the rental company is not a creditor.

[justbroke]

For rental agreements, really a lease agreement, they are notified if they are included on any of your Schedules. For example, if you think you'll want to reject a particular lease, then you'd include it in the Bankruptcy, so that you can basically get out of it.

Otherwise, I don't see why one needs to list the lease on the papers. However, one should list the deposit, if there was one, on Schedule B, as it is property of the Estate. Unless the landlord/lessor is listed as a Creditor somewhere, they aren't being notified.

Seems like the OP's lawyer intends to list them on the Statement of Financial Affairs, at minimum. I still don't think the creditor is notified, just being on the Statement of Financial Affairs, unless they are on the matrix.

Okay, now that is out of the way...

First, they can't evict them. If they decide to take action, it will only be if you decide to reject the lease. I assume that you plan to assume (keep) the lease and continue paying. So, it's of no concern / issue.