Break lease

[jeff689812]

I am in a chapter and need to break my lease due to job loss, and new job paying much less so moving in with family. I read online that the landlord (private landlord) can sue me for the remainder of the lease which is 3 months left and get a judgement.
My attorney claims while in a active BK they cant come after me or get a judgement until the bk is over.
Anyone have any input on who is right?

[justbroke]

Welcome to BKForum. Did you assume that unexpired lease when you started the Chapter 13 or is this a new post-petition lease? If they are a pre-petition creditor then you are likely protected unless they file a motion with the court to pursue their non-bankruptcy rights. If this is a post-petition lease then they are not bound by the court.

I will assume for the answer that your attorney is correct. that means that your lease with this current landlord was pre-petition. They cannot take any action because you are covered by the automatic stay. However, as I wrote, a smart landlord would move for relief form the automatic stay to pursue their non-bankruptcy rights under state law including eviction and a judgment.

Now would a private landlord waste their time trying to do all that? I don't know. Sure they can get you evicted but collecting could be difficult since you're bankrupt.

[jeff689812]

Welcome to BKForum. Did you assume that unexpired lease when you started the Chapter 13 or is this a new post-petition lease? If they are a pre-petition creditor then you are likely protected unless they file a motion with the court to pursue their non-bankruptcy rights. If this is a post-petition lease then they are not bound by the court.

I will assume for the answer that your attorney is correct. that means that your lease with this current landlord was pre-petition. They cannot take any action because you are covered by the automatic stay. However, as I wrote, a smart landlord would move for relief form the automatic stay to pursue their non-bankruptcy rights under state law including eviction and a judgment.

Now would a private landlord waste their time trying to do all that? I don't know. Sure they can get you evicted but collecting could be difficult since you're bankrupt.

I signed my lease in August 2024 filed September 13, 2024

[justbroke]

Yup, it's a prepetition lease. The landlord would need to take steps to enforce their rights by moving the bankruptcy court to allow them to pursue such rights outside the bankruptcy court. That's why your lawyer said that they can't come at you, but I'd add that they can't come at you outside the bankruptcy court without seeking permission from the bankruptcy court. Other creditors, such as mortgage creditors, file motions for relief from the automatic stay all the time. Whether an unsophisticated "private" landlord would even know where to begin is likely why your attorney said that as a basis, they can't do anything since you're protected by the automatic stay.