Stupid mistake - should we include or pay

[artgood]

In April of this year we moved from an apartment we rented ($740 a month, plus $75 storage) to a house we rent for $500 a month.

Somehow, we missed it that our lease was 14 months instead of 12 months. So, we essentially broke our lease with two months remaining without realizing it. No one in the leasing office ever said anything to us, and we didn't realize it until this week when we got a bill for $1900. I went and talked to them yesterday and they are willing to settle for $900.

My question is this:
We have until October 14th to pay that, or it will be turned over to collections. If it is turned over to collections we will have to pay back the $1900, plus two free months that we got as part of the lease. That will jack it up to about $3500. We are probably 2 months away from filing - should we just include it in the bankruptcy? The house we rent now is from a friend, and we will be ok to keep living there so it won't effect that in any way (he isn't going to kick us out).

Thoughts? Anyone?

[ccsjoe]

I'd include it in bankruptcy if you are truly that close to filing.

[october99]

I would think that much would have to be disclosed and have the risk of being reclaim and redistributed. I would probably let it go to collections and IIB.

[bcohen]

I have been living in apartments for more than 10 years, and I have NEVER heard of a 14-month lease. The only lease terms I have seen offered (and this is from living in 3 different states) were 9 months, 12 months, and 18 months. So are you sure that this is legit and that your lease really was for the 14-month duration being claimed? Ask for a photocopy of the original lease papers WITH YOUR SIGNATURE to substantiate this claim. Also, if this really was true, why wasn't any objection raised when you moved out, since you must have needed to contact the owner/property management company to turn over the keys, inspect the premises/etc?

In any case, if you are definitely going to declare bankruptcy, then there is absolutely NO benefit to you of trying to pay this. Even if they do choose to pursue collections and/or file a lawsuit against you (which isn't likely for that amount of money), the debt will be discharged in bankruptcy.

So my advice is to simply do nothing, let them send their threatening letters and make their annoying phone calls, then include the debt in your bankruptcy and have it discharged!

[tammygirl1]

They did say they got 2 free months so maybe it was 2 free months + 12 months paid to = 14?

[rjmwx81]

I have been living in apartments for more than 10 years, and I have NEVER heard of a 14-month lease.

My place does 9, 12, 13, and 18 month leases. Every time I renew I'm always tempted to ask why they have a 13. Very strange.

[mijd]

They did say they got 2 free months so maybe it was 2 free months + 12 months paid to = 14?

Bingo, mine is a 13 month lease at a special rate. Also having to rent for the 1st time since 1990, I asked many landlords and property management companies if Bks or foreclosure would disqualify potential renters. Their only problem was renters who destroyed property, broke lease terms or had a bad payment history.