Apt leases

[Flgranny]

I just read that apartment leases are considered contracts and would be dismissed in a chapter 7. The landlord could chose not to Remew. Is that true

[justbroke]

This is not true. In a Chapter 7/11/13, an unexpired lease must be listed on Schedule G and the debtor must, on their Statement of Intentions (SOI), indicate what they want to do. Those options are assume or reject. If the debtor doesn't do anything or put anything on the SOI then it is rejected.

The landlord does not choose.

The debtor chooses to either assume (keep the lease) or reject (force the early termination of the lease). If they assume the lease then it continues under its contract terms. The bankruptcy will not be considered a triggering act causing the lease to be in breach (despite what some leases actually say). The debt must continue paying under the terms of the lease. A debtor may actually be able to cure a defect in the lease, such as an eviction, but they must have the money and deposit that money with the court. The debtor may not modify any terms of the lease.

Should the debtor reject the lease, then they must take action to turn over the leased property to the creditor.

I hope that helps. That's my understanding of this. I rejected a new lease in my Chapter 13 because I moved into one of my investment properties after filing.

[Flgranny]

Thx. I want to assume. The way I read it they could renew and I don’t know if that meant credit check etc. I’ve been here 2 years and auto pay but wouldn’t pass the credit given bankruptcy. The company doesn’t approve unless the bankruptcy is 2 years.

[justbroke]

No, there is no renew option. The options for an unexpired lease are assume or reject; in other words, keep the lease or get rid of the lease. Generally speaking the landlord is likely to keep you if you pay and you "assume" the lease. They key is to never miss a lease payment and never ever get evicted.

[shipo]

I was nearly two years into a lease when I filed for Chapter 13; my lease converted to month-to-month at the two year mark and I ended up living there for another 7 years.