QUESTION
Can I file bankruptcy on my home if I'm under a rent to own contract?
Asked on Jul 09th, 2012 on Bankruptcy - New Jersey
More details to this question:
I am behind on payments because of a divorce and my son being in the hospital.
20 ANSWERS
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes.
Answered on May 29th, 2013 at 1:01 AM
Bankruptcy Law Attorney serving Huntington Woods, MI
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Austin Hirschhorn, P.C.
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If you are renting a home under a contract where you will eventually get ownership information regarding the home and any money owed on it would be listed in the bankruptcy schedules. The reason for the filing does not usually get asked until the 341 meeting in the case. The rent to own purchase contract would not prevent you from filing for bankruptcy relief.
Answered on Aug 10th, 2012 at 3:03 PM
You can file Bankruptcy and include the contract as part of your BK. A rent to own home purchase is not common, so my best guess is that you can repay the missed payments via a Chapter 13.
Answered on Aug 10th, 2012 at 3:02 PM
Bankruptcy Attorney serving Turnersville, NJ
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Law Office of Joseph J. Rogers
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If you are behind on your rent you can cure the arrears through a Chapter 13 bankruptcy. It should be filed prior to the judgment of eviction being entered. If you are trying to get out of the contract either a Chapter 7 or Chapter 13 would discharge your obligations.
Answered on Aug 10th, 2012 at 1:26 PM
Bankruptcy filings require that you disclose all debts and all assets. You cannot stay in the house without paying the rent.
Answered on Aug 09th, 2012 at 8:19 PM
Burton J. Green
Interesting question. Don't really know the answer. It might be possible to bring the contract current in a chapter 13. However, my initial response is that this governed by the terms of your contract. Most rent to own contracts have a default on the option to buy when the payments are delinquent. However, if the owner has not notified you that she wants to cancel the contract, you should probably work something out with the owner to bring payments current. An eviction is most likely in this situation if you are behind in rent payments.
Answered on Aug 09th, 2012 at 8:10 PM
Glen Edward Ashman
The question will become will it help you or not, and I'd have to read the contract to know.
Answered on Aug 09th, 2012 at 8:09 PM
Bankruptcy Attorney serving Columbus, OH
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The Needleman Law Office
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Yes you can file bankruptcy on the rent to own contract.
Answered on Aug 09th, 2012 at 8:05 PM
You don't need to file bankruptcy to rid yourself of a rent-to-own contract. Stop paying the rent and, when they give you a 3-day notice, move. When you file bankruptcy, you don't file on this or that debt. You file bankruptcy. Period. The impact of the bankruptcy can be different on different types of debt.
Answered on Aug 09th, 2012 at 5:52 PM
Bankruptcy Attorney serving Washington, DC
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Law Offices of Diann C. Moseley
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Yes, you can. If you are a renter and not the owner of the house, the house is not part of the bankrupt estate. Assuming that you otherwise qualify for bankruptcy, you can file a chapter 7 bankruptcy. Your contract to purchase the house will likely be considered an executory contract which means you can elect to either assume or reject the contract in bankruptcy.
Answered on Aug 09th, 2012 at 5:48 PM
Bankruptcy Attorney serving Atlanta, GA
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Saedi Law Group, LLC
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Yes. You can file bankruptcy to repay the arrears.
Answered on Aug 09th, 2012 at 5:44 PM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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You can file and that would stop them from evicting you if they do not have an order yet. You will have to make up the payments on the house, or they can request permission to evict you.
Answered on Aug 09th, 2012 at 5:15 PM
General Practice Attorney serving Crystal Lake, IL
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Bruning & Associates, P.C.
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Bankruptcy can eliminate your debts, as well as ones owing under a contract to purchase your home, though you would probably also have to give up possession of the home. You will need to consult with an experienced bankruptcy attorney to determine how to avoid liability under your contract if you remain in the home for any length of time after filing for bankruptcy.
Answered on Aug 09th, 2012 at 5:15 PM
Criminal Defense Attorney serving Calabasas, CA
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Law Office of Bernal P. Ojeda
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Yes because it's a contractual obligation and their are damages for breach line your late payments.
Answered on Aug 09th, 2012 at 5:12 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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In a bankruptcy you must list all your debts and all your assets. Therefore, you would list this debt. But, you must pay for the house in order to keep it. Please understand that filing for bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.
Answered on Aug 09th, 2012 at 3:03 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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Yes, you can file bankruptcy if you are renting your home to own it. But you may not want to keep it.
Answered on Aug 09th, 2012 at 2:38 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You can file if you have not filed within about the previous 10 years. The better question is should you.
Answered on Aug 09th, 2012 at 2:37 PM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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Yes. Chapter 13 will allow you to keep possession of the house while you make payments on the past due amount.
Answered on Aug 09th, 2012 at 2:36 PM
Chapter 7 Bankruptcy Attorney serving Clinton, MS
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Timothy Kevin Byrne Attorney at Law
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Yes, but you will probably need to find new living quarters.
Answered on Aug 09th, 2012 at 2:36 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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Yes, you can file a chapter 13, which will allow you to cure the arrears, but you would have to remain current on your post petition payments. Many of us, in this field, offer a free consult.
Answered on Aug 03rd, 2012 at 9:45 AM