My relative filed a CH7 no asset BK petition in late November 2008. He was discharged a couple of days ago.
When he filed, he was 1 month late on his rent with 1 month to go on the lease. He moved out before the lease was up. The apartment complex filed a motion for eviction, but his BK had already been filed so all collection activity had been stayed. he moved out before the lease was up.
The apartment complex filed a motion to lift the stay to continue with civil eviction proceedings. By that time, he had already moved out and dropped the keys off at the rental office. The BK court granted the motion to lift the stay in rem onlly (for posession of the leased property) and not in personam which means they couldn't seek $$$.
Before the BK was even discharged my relative received a dunning letter from the apartment complex for $3800. It threatened collection activity if not paid. His rent had been $940/mth, and the dunning letter did not itemize. He called his attorney who told him to fax the letter to him and he would take care of it, I am assuming by writing a letter??
This afternoon, he received a letter, now from a CA for this $3800. Of course he will call his attorney tomorrow, but, I'm wondering, does he owe the apartment complex for the 1 month post petition rent? His lease was up 12/31/08 and he had 1 month to go on the lease after he filed. The attorney told us that the the pre-petition back due rent was dischargable. He rejected the balance of the lease in the BK petition and moved out well before the lease was up. Does he owe that 1 month post petition rent? Can they tack on and make him responsible for all the fees they are tacking on (two months rent would be $1880, so somewhere in there they are tacking on another $1000)
The stay was lifted, but in rem, not in personam. He expected he may owe the one month post petition rent, but not the fees and pre petition back rent.
Regardless, aren't the letters violation of the stay? (especially the second one)
When he filed, he was 1 month late on his rent with 1 month to go on the lease. He moved out before the lease was up. The apartment complex filed a motion for eviction, but his BK had already been filed so all collection activity had been stayed. he moved out before the lease was up.
The apartment complex filed a motion to lift the stay to continue with civil eviction proceedings. By that time, he had already moved out and dropped the keys off at the rental office. The BK court granted the motion to lift the stay in rem onlly (for posession of the leased property) and not in personam which means they couldn't seek $$$.
Before the BK was even discharged my relative received a dunning letter from the apartment complex for $3800. It threatened collection activity if not paid. His rent had been $940/mth, and the dunning letter did not itemize. He called his attorney who told him to fax the letter to him and he would take care of it, I am assuming by writing a letter??
This afternoon, he received a letter, now from a CA for this $3800. Of course he will call his attorney tomorrow, but, I'm wondering, does he owe the apartment complex for the 1 month post petition rent? His lease was up 12/31/08 and he had 1 month to go on the lease after he filed. The attorney told us that the the pre-petition back due rent was dischargable. He rejected the balance of the lease in the BK petition and moved out well before the lease was up. Does he owe that 1 month post petition rent? Can they tack on and make him responsible for all the fees they are tacking on (two months rent would be $1880, so somewhere in there they are tacking on another $1000)
The stay was lifted, but in rem, not in personam. He expected he may owe the one month post petition rent, but not the fees and pre petition back rent.
Regardless, aren't the letters violation of the stay? (especially the second one)
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