Legal to collect money outside of BK court?

[Nalani]

My landlord is in foreclosure and is likely going to lose the house I rent. We owe him several months back rent as my husband has been out of work. Th landlord was letting it slide because he was losing the house anyway.

Now he has claimed bankruptcy (in an effort to save this house) and says he wants us out immediately. His attorney just called me and wants us out in two weeks. He asked when they will get the back rent, I said I assumed that we would be contacted by the bankruptcy court, but the attorney said, no this is just between us. He wants $35 thousand! Isn't that illegal to not run that thru the bankruptcy?

He says that they are going to file eviction papers.

[ssmdem]

I'd tell him to go jump in a lake. First of all - how did a "few months rent" get up to $35,000? Is that really the amount you're behind on?

[Nalani]

Well the rent is 5K...and I think we are more like 6 behind.

My husband had been communicating frequently with the guy and he understood, having been through a tough time himself and losing several of his rentals. He just kept letting us slide and now he wants us out...of course I do not blame him and we are willing to move and to repay the debt we owe over time. His attny is telling us that he needs it now and wants the keys before June 1. I told him we were working on making the move out but that I assumed we would be hearing form the court on our debt. He said no, we are keeping that between us.

Edited to add...they are a little shady and frankly now I am a bit scared.

[ssmdem]

Honestly, I don't know about the legality of the attorney asking for the money. Maybe call ANOTHER bankruptcy attorney - most give free consultations - I'm sure they'd be willing to answer this one question for you over the phone. HECK, I'd be having to file bankruptcy myself anyway if somebody wanted that much money up front! But, honestly, if you're that far behind, he really is within his rights to ask you move out. Good luck.

[Nalani]

Yes, and we are aware that we need to move. My husband has been working on a project that would have brought in a large chunk of money that would have allowed us to catch up on the rent in the next month or so, but we are looking for a place to move to.

I just assumed our debt would be going to the bk court not in his pocket. I thought that was against the law.

[tigergem]

Yes, I would have thought that you would have been contacted by the bankruptcy trustee. It might be a good idea to get a consult from another bankruptcy attorney and see what they have to say about it.

[catleg]

There are some, ahem, ethical concerns about collecting rent on a property that is in default, and in some localities this may be illegal. I would wait and see how his BK case works out, I'm curious about whether he discloses that he owns rental property with back rent due to the trustee, who would come after you and it would be more serious then. Of course this is also a chicken-egg problem, in some respects.

[SMinGA]

I don't know what eviction involves where you are, but any eviction must be filed thru some court to be legal. He can't just change the locks and put your stuff on the street.

If I were you, I'd perhaps contact his bankruptcy trustee and inquire as to how to make rental payments...

[tigergem]

If you know what district your landlord filed in, you can sign up for PACER and get a peek at his case by querying and see what's up with the house. That would also give you the contact information for the trustee without having to ask him outright.

[AngelinaCatHub]

MY 2 Cents

Well first I would say......5K a month for an apartment??? I've just been raised on the wrong side of the silver tracks.

Next, yes get on PACER and see if this guy is truly in bk. He may not even own the buildings.

Next, the lawyer cannot say "this is between you and I". It is not.

Next, 7 months behind in rent you got a hell of a patient landlord.

Next, An eviction is a lawsuit. You must bring suit to evict and then a hearing and/or default Judgment or Judgment to evict. Then a writ to evict and the Sheriff will put you out.

Next, If you cannot pay for 7 months rent at 5K a month, how about a 1K place with less frill?

Next, Are YOU also in bankruptcy? Or, are you asking only as informational in regards to your landlord?

OK, my 2 cents is spent. 'Hub

[keepmine]

but the attorney said, no this is just between us. He wants $35 thousand! Isn't that illegal to not run that thru the bankruptcy

Ask him to put that statement in writing.
I'm of the opinion that, if your LL is in bk that any rent due is the property of the bk estate.

[LadyInTheRed]

but the attorney said, no this is just between us. He wants $35 thousand! Isn't that illegal to not run that thru the bankruptcy.

Not necessarily. As shady as it sounds from what we've read so far, the landlord may have listed the receivable as an asset and either exempted it or is paying at least $35k to unsecured creditors in his Chap 13 plan. The only way to know for sure is to look up the landlord's case as tigergem suggested.

[RuthCB]

Isn't there some legal thing called "past practice?" If in the past the landlord let you slide on the rent for several months and made no effort to collect, then you had the expectation that because of "past practice" that this would still be the case. (?)

[StartingOver08]

No Ruth, there is nothing in the lease/law/statutes that would allow someone to stop paying forever because the landlord allowed the tenant to stay for several months without paying rent. If that were the case then this would be one scr***d up world!

However, keepmine has a good point. Get the offer in writing from the attorney. Then contact the Trustee. I'm sure the Trustee would be interested in the communication where the attorney is trying to collect funds "outside" the BK court.

Or, the OP could just vacate and move to a place that they can afford to actually pay the rent.

[frogger]

I'm of the opinion that, if your LL is in bk that any rent due is the property of the bk estate.

That's my opinion as well.