Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Collecting Rents After Filing A Chapter 7 - A Must Read

Collapse
This is a sticky topic.
X
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • #16
    Originally posted by scooter6251 View Post
    Su,
    I wonder how the trustee would know if if there was a caretaker or even a paying renter in the house, a house that is headed to foreclosure?
    Well, depending on if I am able to file Non-consumer chapter 7, I may have the renters paying up until a few months prior to bk filing. So the trustee would see on my bank statements that there had been renters. I probably won't volunteer anything about it, but if asked directly if they are rented, I could safely say no. But if asked if anyone lived there I would say yes cause I am afraid of perjury! Which I don't know if he would even ask, given that they aren't rented. The homes are all in Ohio and I will be filing in North Carolina, so while it may be worth his while to send an investigator by if they were local homes, maybe not so much being states away.

    Comment


    • #17
      I have a rental that I have been collecting rents from before and after by Ch7 BK closed. My lawyer told me as long as the trustee doesn't ask for those rents as part of the estate then i get to collect them until the property is foreclosed. He said in most cases they don't as if they DO then they have to manage the property. My trustee didn't mention anything at the 341 meeting and I have been collecting rents ever since. Almost 6 months after my BK closed. I did start paying again on this loan for a short while to keep it out of foreclosure but recently stop making payment and just want this property to go into foreclosure. Interesting enough USBANK calls me and says since I have renters in the property I have to make the mortgage payments. Not sure what to think of that but I'm pretty sure I can collect the rents as my lawyer said so specifically. I don't think making a few payments changes anything as I did NOT reaffirm the debt with USBANK.

      Comment


      • #18
        Originally posted by ryan44 View Post
        Interesting enough USBANK calls me and says since I have renters in the property I have to make the mortgage payments. Not sure what to think of that but I'm pretty sure I can collect the rents as my lawyer said so specifically. I don't think making a few payments changes anything as I did NOT reaffirm the debt with USBANK.
        Isn't it interesting what seems to get the bank's attention. You can beg them to foreclosure and they don't listen. But if they think you're making a buck or 2, they go nuts. We are moving so will do the same as you, rent until they foreclose. How long we collect rent is up to them. I'm no longer in a hurry. Good luck

        Comment


        • #19
          yeah they actually modded my first loan then discharged my second loan. Then I filed and after my BK closed USBANK called me and said "hey what do you want to do with the property" I said well what are my options. They said hey the second is a 50k lean against the property but if you stay current on the first mortgage you can keep it out of forclosure. I did this for about 4 months but then decided this isn't in my best interest. Now since I stop paying they are demending a pay the mortgage since I have rents.. I said...wait a sec...you can ask me for payment...this was included in my BK and its against the law...USbank got real nasty and said since I have renters I HAVE TO PAY THEM....I just hung up.

          Comment


          • #20
            Originally posted by ryan44 View Post
            I have a rental that I have been collecting rents from before and after by Ch7 BK closed. My lawyer told me as long as the trustee doesn't ask for those rents as part of the estate then i get to collect them until the property is foreclosed. He said in most cases they don't as if they DO then they have to manage the property. My trustee didn't mention anything at the 341 meeting and I have been collecting rents ever since. Almost 6 months after my BK closed. I did start paying again on this loan for a short while to keep it out of foreclosure but recently stop making payment and just want this property to go into foreclosure. Interesting enough USBANK calls me and says since I have renters in the property I have to make the mortgage payments. Not sure what to think of that but I'm pretty sure I can collect the rents as my lawyer said so specifically. I don't think making a few payments changes anything as I did NOT reaffirm the debt with USBANK.
            Hi Ryan! Did you collect rents during BK? Or did you stop, then restart after BK? If during, was the rental income included in your income? If after, how long did you wait? thanks!

            Comment


            • #21
              Originally posted by scooter6251 View Post
              Isn't it interesting what seems to get the bank's attention. You can beg them to foreclosure and they don't listen. But if they think you're making a buck or 2, they go nuts. We are moving so will do the same as you, rent until they foreclose. How long we collect rent is up to them. I'm no longer in a hurry. Good luck
              Scooter we plan to do the same. It makes no sense what the bank said to Ryan .... if he does pay them, they won't foreclose! We can't get enough rent in our area anymore to make the payments, so it's a moot point with us. Why should we let the property sit empty and deteriorate, and get vandalized, maybe squatters, and we have to carry insurance? Come on! I don't see a darn thing wrong with it. Just have to be sure all my i's are dotted so my bk goes smooth. Good luck to you too!

              Comment


              • #22
                yes I collected before, during and after. It was included in my income specifically for the means test. In other words the trustee did have that info at the 341 meeting.

                Comment


                • #23
                  Originally posted by StrawberrySu View Post
                  Scooter we plan to do the same. It makes no sense what the bank said to Ryan .... if he does pay them, they won't foreclose! We can't get enough rent in our area anymore to make the payments, so it's a moot point with us. Why should we let the property sit empty and deteriorate, and get vandalized, maybe squatters, and we have to carry insurance? Come on! I don't see a darn thing wrong with it. Just have to be sure all my i's are dotted so my bk goes smooth. Good luck to you too!
                  Yeah I'm pretty sure as long as the Trustee doesn't include the rents after BK as part of the estate then your fine to collect Rents. Now i'm not sure how to take the first part of this tread but my lawyer seem pretty confident that I can collect rents and keep the money after my BK was closed.

                  Comment


                  • #24
                    Does anyone know how this applies to someone renting out the basement of their primary house, which they plan on keeping in Chapter 7? Is there a problem collecting rent in that instance?

                    Comment


                    • #25
                      Sure if its income then you need to report it to your lawyer before the BK. After the BK closes and the trustee didn't make it part of the estate...collect whatever you want. I'd give them free rent until your bk was over. Its your house and if you want to let them stay for free for awhile then I don't see the harm...different story if this was a rental investement property.

                      Comment


                      • #26
                        I'm a renter and my landlord filed Chapter 7 on March 17th, we only know because we are listed as a creditor because of our $1100 security deposit. I am a little confused by one of the statements on his bankruptcy and I'm hoping someone can help. I paid April's rent and he has deposited it.

                        "17. Describe any increase or decrease in income reasonably anticipated to occur within the year following the filing of this document:

                        Debtor not expecting to receive rental income in future"

                        I want to know what this means.

                        Comment


                        • #27
                          Originally posted by Klynn6 View Post
                          I'm a renter and my landlord filed Chapter 7 on March 17th, we only know because we are listed as a creditor because of our $1100 security deposit. I am a little confused by. . . I paid April's rent and he has deposited it. "17. Describe any increase or decrease in income reasonably anticipated to occur within the year following the filing of this document:Debtor not expecting to receive rental income in future" I want to know what this means.
                          Sounds like the Debtor will be surrendering the property to the mortgage company. It also sounds like he understands he cannot collect rents (he will most likely have to turnover the $$ you paid after he filed to the trustee). If you are on a lease you are technically still bound by the contract you signed. However, your landlord is now the Trustee. Before you decide to "default" under the lease you should contact the Trustee to see what he/she plans on doing with the property. Tell him/her that you are the tenant and do not understand what is going on. If he wants rents paid he should tell you at that point.

                          Des.

                          Comment


                          • #28
                            Originally posted by despritfreya View Post
                            Sounds like the Debtor will be surrendering the property to the mortgage company. It also sounds like he understands he cannot collect rents (he will most likely have to turnover the $$ you paid after he filed to the trustee). If you are on a lease you are technically still bound by the contract you signed. However, your landlord is now the Trustee. Before you decide to "default" under the lease you should contact the Trustee to see what he/she plans on doing with the property. Tell him/her that you are the tenant and do not understand what is going on. If he wants rents paid he should tell you at that point.

                            Des.
                            Thank you for responding so quickly. I sent April's check certified mail and will continue to do so unless I'm told different by the trustee, I was worried he wouldn't cash or deposit it so I wanted proof that I sent it and that he received it. I will be putting a call in to the trustee today. We have 4 kids (1 son with autism) so we have to be very careful since change throws him way off so I have to have a plan and work with him consistently so he doesn't spin out of control and regress.

                            Comment


                            • #29
                              Originally posted by Klynn6 View Post
                              T We have 4 kids (1 son with autism) so we have to be very careful since change throws him way off so I have to have a plan and work with him consistently so he doesn't spin out of control and regress.
                              You need to start thinking ahead. One of three possibilities:

                              1. Property has no equity and mortgage is not current - eventually lender will foreclose which means eventually you will be evicted.

                              OR

                              2. Property has sufficient equity to justify the Trustee marketing and selling it. If you are not the buyer and the actual buyer does not want you in the property, you will be evicted.

                              OR

                              3. (Extremely unlikely) The Trustee will walk away from the property which returns its "ownership" to the debtor, the debtor is current in the mortgage payments and wants to continue with the lease arrangements you have. I have never seen this happen but it is always possible.

                              No matter which way this goes, you need to begin the process of finding other accommodations so that the change in your son's life is minimized and well planned.

                              Des.

                              Comment


                              • #30
                                As of yesterday, we are discharged and closed. We surrendered our home and our rental property -- we are not paying either mortgage and want the banks to foreclose. However, we are in Florida and know full well this process could take forever. It's been a year on our primary residence with no word from the bank. The rental property we quit paying on in October, so it will most likely be longer for it to foreclose. Tenants had moved out before we filed for bankruptcy, so it is vacant now. We have a neighbor keeping up the lawn but other than that, it is empty (has already been broken into once) - so do have some minor damages that we would need to take care of to rent it out again. My attorney told me that once the bankruptcy is discharged that the property reverts back to us (not the estate) so we are free to rent it out if we choose to. This correct info?? Just wanting a second opinion. I would like to repair the damages and rent it out on a month to month basis. We would be completely up front with incoming tenants and intend to charge half the normal rent due to the situation. We also want to put into the contract that we are not responsible for repairs that might come up after they move in -- i.e., I'm not sinking any more money into this house. The normal rent for houses in the area is $1000 and we would be charging $500 so I feel like this is fair. It is a newer house too, so I foresee nothing that could come up that would cost major funds for the tenant. Bottom line, even if it did - they could just pack up and leave. We aren't charging a deposit. Essentially I just want someone to take care of the place so we don't have to and bring in a little money to offset the rent we are going to have to be paying when we move from our home. Do you see anything wrong in what we want to do? Are we legally okay? In case it matters -- the 1st and 2nd mortgage on the rental property are both held by the same bank.
                                04/01/10 - Hit rock bottom and knew we were going to have to file for bankruptcy and surrender our home. 12/14/10 - Filed Chapter 7, 02/09/11 - 341 Hearing, 04/14/11 -

                                Comment

                                Unconfigured Ad Widget

                                Collapse
                                Working...
                                X