Renters living in our house.

[momof3inSD]

We have a renter in our house that we plan to file BK on. Do we need to let them know before we file or how does that work. We do plan on telling them when we do file though.

I plan on telling the renters in the next week or two. Any advice on what to say. Thanks in advance.

[justbroke]

I plan on telling the renters in the next week or two. Any advice on what to say. Thanks in advance.

Since they'll probably know about the Bankruptcy anyhow???...

I have filed for protection from the U.S. Bankruptcy court. As part of my filing, I am surrendering the home, which you are renting, to the Bank.

Be advised that the Bank may assume (take over) your lease and you may be obligated to pay the Bank or their representative for the next rental period. If the Bank should sell the property, the Bank will notify you and will give you at least 60 days to vacate.

I wish you all the best. I hope that everything works out for you.

I don't know... something like that???

[momof3inSD]

Do you think the Bank may keep renting to them or will it just be a pain for the bank? Should I tell her to talk to the bank or let her figure it out on her own?

[justbroke]

Do you think the Bank may keep renting to them or will it just be a pain for the bank? Should I tell her to talk to the bank or let her figure it out on her own?

If the market is depressed in that area, and houses are difficult to sell... the Bank will likely keep renting it.

It's all about revenue to them... stop the bleeding.

After you file (Chapter 7), the house will belong to your Estate until the Trustee decides to Abandon it. Until that time, the rents should just be saved by your renter, and then they will know once the Trustee figures a disposition for the property... which could include selling it!

However, if the property is upside-down and you're surrendering it... the Trustee won't want it, but it's still a formality.