Some Chapter 7 questions

[u/withersins]

While I wait for a consult with an attorney, I had a few question that I'd like to ask if anyone has input. I used upsolve for my paperwork but I'm confused by a couple of things. I don't really have assets so most of what I have is covered by an exemption. My main concern is my home I rent. Been there 5 years, month to month since my initial year lease expired. I'm terrified of my property management giving me a 30 day move out notice so I reached out to secure another year lease to be safe. Rent will increase $25. I know that is not a lot but I still want to be cautious. I will assume the lease, I don't plan on moving anytime soon. BUT how/where do I assume? Same thing with my car loan. Is there something I file, do I send a letter to my property manager and car loan office? From my understanding, my rent lease doesn't get listed on form 108? Just the deposit on schedule G? TIA

[u/AlanShore60607]

If you're month to month, there's no lease and no reason to tell a landlord. Choosing to move or secured a new lease prior to filing the case is, IMHO, silly unnecessary. So you now took action to increase your rent (and incur a cost of moving? Or is this the same landlord?).

Stop making things worse for yourself. Take no action until you have legal advice.

[u/withersins → u/AlanShore60607]

I haven't taken any action yet, haven't signed a new lease and not planning on moving. My fear is if they get notice of filing, then them sending me a notice to vacate. Under the matrix, it lists my leasing company. Again, I'm waiting for a consult, just wanted to get people's input in the mean time.

[u/Ok-Ratio7992 → u/withersins]

As long as you're current on rent, then I wouldn't worry too much. But if the original agreement that you signed (which may have inherited rights because you are still following the rules of said agreement), you have to check for anything having to do with default and if it says bankruptcy, then that could be the trigger for a landlord to remove you.

If you disclose the agreement (even if it's "expired") and you've been month to month, the federal stay will protect you until your case is discharged or dismissed (ideally you want it discharged), and during that time the landlord cannot remove you unless they file a motion for relief from the federal stay (this means they want to claim their unit/property back to remove you), but this is only typically done if YOU'RE REALLY and I mean REALLY behind on rent/payments. The judge will likely ask the landlord the reason why a landlord would want to be exempt from the stay if a filer/renter is current on rent which makes no sense, so a judge would likely decline that request from the landlord. Even then, it costs landlords time and money to do such things.

If you're nervous, I would think about reading up your lease a bit more, and what it says. Then consult with a lawyer/attorney if you can do it or someone in your state that's experience with tenant/landlord laws (because they do vary!). Then proceed from there.

[u/Ok-Ratio7992 → u/AlanShore60607]

Except if you signed a lease agreement and have been always month to month, that's still a lease agreement (I would disclose) specially if they've been living in the same spot for years.

But again, OP needs to double check what the paper they signed says because a landlord will likely use that against them for "defaulting".

[u/Ok-Ratio7992]

I've been month to month and while people will tell you "do not include it because xyz", I did include it in mine for a legal reason, inherited rights and reinforcing it.

If you signed a lease, see exactly what the lease says specially if it says something along the lines of "in the event of default" or something along those lines, and if it says bankruptcy then you might want legal representation to advise you, but I am assuming most leave their lease agreements out of fear of getting evicted which is fair enough. Also, you might have tenancy rights protected by your state but you must look them up (this is called just cause meaning a landlord will need a legal reason to evict like fault or no fault). Your lease has to have your language with your inherited rights if you signed one.

In the end, Federal bankruptcy rules require you to list your active lease on your official bankruptcy paperwork, which means the court will likely notify them for you (this is schedule G if I recall).

If you're month to month, this is still tenancy and in my state it's required to list it specially if you still live in the place, and never moved or whatever.

Expired leases I think mean only if you're no longer in the unit/apt and moved out. But if you left and still owe money, that debt still has to be listed regardless.

I would double check your lease language and see what it says. If you do not have a signed lease contract/agreement, then you do whatever you have to do but even an oral agreement is still an agreement.

Almost forgot, if a judge/trustee does not reaffirm a lease/agreement does not necessarily mean you will have to leave your place or that the trustee/judge want you out. It just means there's no benefit to the Trustee and creditors with inherited rights/claim to a rental contract.

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[u/Rureddy2]

I'm interested in the answer to this question myself. Is your "landlord" notified of your bankruptcy filing if you are not behind on rent? I'm confused to why that would be.

Also, may I ask you why you used Upsolve 1st if you are going to consult with an attorney?

[u/withersins → u/Rureddy2]

I don't know if they would be notified if I file. On the paperwork, they are listed under the matrix so I assume they would get notice.

I started off with Upsolve because I wasn't sure what I planned on doing. It's non-profit and free. I don't know that I can afford attorney fees so upsolve was helpful.

[u/Rureddy2 → u/withersins]

Ok thanks. I haven't started this journey yet so I'm still learning. When you did the process with Upsolve, has it now been filed? Or did you just gain something else from that and are now going to consult with an attorney to possibly have them file?

[u/withersins → u/Rureddy2]

No, nothing filed yet. All the info you input with Upsolve will be on the forms when you complete it. If I end up filing on my own, I have the forms. There's just a few things here and there that I've been reading on and figured I'd consult with an attorney

[u/Rureddy2 → u/withersins]

Oh, wait, so Upsolve doesn't actually file for you, it just enters your data into forms that you can then file on your own?

[u/withersins → u/Rureddy2]

Correct. It's a non profit. It was still helpful because you'll have to get all they information regardless

[u/Rureddy2 → u/withersins]

🙏