co signer on apt worried

[adaughter]

so we filed friday and our aunt is a co signer on the apartment and the lawyer is going to send the apartment complex and my aunt the co signer a letter about the bankruptcy...my aunt who is purchasing property in this next month is worried that she will be affected. do you think the apartment complex will report the bankruptcy on her credit even though it is not her bankruptcy, when they get a letter stating there has been a bankruptcy in our apartment?

I dont know I know I might be over thinking but I want to be safe it would not be good to have her affected in any way.

p.s we always pay our rent on time and plan to continue paying the rent just in case any one is wondering

[WorkingItOut]

Why are they even notifying your apartment about the bankruptcy anyway? Are you behind on your rent?

[adaughter]

well they said because they are a debtor since we pay month to month its the law to notify them that there has been a bankruptcy. according to our lawyer. and no we are not behind on rent pay it on time every time.

[WorkingItOut]

That doesn't seem right to me. Hopefully someone who knows more will chime in and explain as well as answer your question.

I just fail to see how rent is considered a debt. You didn't take out a loan for it. You are not charged interest for it. Is your lawyer also notifying your utility companies? Your phone company? Your cable company?

[StartingOver08]

Bankruptcy is not just for debts. It also is for contracts - including leases.

This is from one of the bk lawyer sites: http://library.findlaw.com/1999/Sep/1/130691.html
Can I Terminate The Lease After Bankruptcy?

No. Even though most lease agreements contain boiler plate language providing that

the lease is in default upon the filing of bankruptcy, the landlord cannot terminate the lease without a court order.

The Bankruptcy Code provides that if a lease of real property is not assumed or rejected within a certain period of time, the lease is deemed rejected and the trustee and/or debtor is required to surrender immediately the property to the lessor. The time period varies with the type of bankruptcy and the type of real property.

Landlords should not sit back and wait until the lease is assumed or rejected, especially if rental payments are not being received. The landlord should file a motion requiring the trustee and/or debtor to assume or reject the lease and to require rent payments.
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For you, you are current and you want to stay where you are so it probably will not make any difference at all.

[epiphany]

Bankruptcy is not just for debts. It also is for contracts - including leases.

This is from one of the bk lawyer sites: http://library.findlaw.com/1999/Sep/1/130691.html
Can I Terminate The Lease After Bankruptcy?

No. Even though most lease agreements contain boiler plate language providing that

the lease is in default upon the filing of bankruptcy, the landlord cannot terminate the lease without a court order.

The Bankruptcy Code provides that if a lease of real property is not assumed or rejected within a certain period of time, the lease is deemed rejected and the trustee and/or debtor is required to surrender immediately the property to the lessor. The time period varies with the type of bankruptcy and the type of real property.

Landlords should not sit back and wait until the lease is assumed or rejected, especially if rental payments are not being received. The landlord should file a motion requiring the trustee and/or debtor to assume or reject the lease and to require rent payments.
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For you, you are current and you want to stay where you are so it probably will not make any difference at all.

But adaughter states she is on a month to month, ergo there is no lease that financially obligates her to pay or the landlord to rent for a substantial period of time.

AD----that doesn't sound right that your landlord would have to be notified unless you do have a lengthy lease (in which case you are NOT on a month-to-month) or you are behind on the rent. Did you sign something saying you would pay for X amount of months?

I certainly didn't have to have my landlord notified and I am in SoCal too.

If you are indeed on a month to month, you should let your attorney know that and ask again if that notification is really necessary. That notification is best left unsent for all concerned if possible.

Good luck,

ep

[adaughter]

ugh so I just dont know what to think anymore. He INSISTED on listing the apartment complex.....and we filed and they were under the name of the creditors when we signed. and when we asked he was like "sorry that this is the law and I have to follow it." and he said rental agreement lease same thing. ahhhh well lets just hope for the best I guess

[JRScott]

You might go by the office and let them know. The office of the apartments, so that its not a surprise, let them know you plan to stay and continue paying.

[adaughter]

I know JRScott is right I am just going to stop by the managers office and inform her shes a nice lady anyway. The only reason I was antsy to do that was because when we were signing and I asked the lawyers secretary she was like "no dont even mention it" but shes just skiddish and I'm not gonna listen to her.

[JRScott]

Good Luck a

[bobmartins69]

I never had any such issue relating to guarantor. I always preferred leasing guarantee firms to be the third party or co signer between the landlord and myself. This works more hassle free.