QUESTION
Can I rent the house to someone if it was discharged in a bankruptcy and the bank has done nothing yet?
Asked on Oct 30th, 2015 on Bankruptcy - Washington
More details to this question:
Can I rent my house to someone in need if I filed bankruptcy and the case has been discharged for 3 years but bank has done nothing yet with the house?
10 ANSWERS
As long as you remain the legal owner of the property, you have every right to rent it out. As an issue of fairness, you ought to let the tenant know that the property might be subject to foreclosure and that the length of the lease cannot be guaranteed.
Answered on Nov 09th, 2015 at 12:25 PM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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Nobody, including the bank, wants a house vacant (invites vandalism & general disrepair).
Answered on Nov 09th, 2015 at 2:06 AM
Yes, there is nothing wrong with doing that.
Answered on Nov 09th, 2015 at 2:06 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Yes, but only rent it month to month. Don't sign a lease a longer lease. You can rent it but you're right to rent is subject to the bank's right to foreclose. By renting monthly, you can cancel the contract, if the bank forecloses and you won't be subject to being sued by your tenant.
Answered on Nov 09th, 2015 at 2:06 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Perhaps but I need more details to form a firm opinion. What rights do you have in the property to support your renting it?
Answered on Nov 09th, 2015 at 2:05 AM
As long as the property is still in your name, and as long as the bankruptcy trustee never asked for any rent, you are probably safe to rent it on a month to month basis but, under the circumstances, no long term leases. You should explain the circumstances to any tenant so they are not surprised if they get evicted when the bank finally decides to foreclose.
Answered on Nov 09th, 2015 at 2:05 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Yes. But there remains the risk that the Bank may wake up and demand its rights.
Answered on Nov 06th, 2015 at 8:21 PM
2 Awards
Yes. You still own the home until the bank forecloses.
Answered on Nov 06th, 2015 at 8:20 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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The question is not whether the discharge has been granted or whether the trustee has abandoned the property. This happens when either an Order Abandoning Property is issued or the case is closed. In general, it is important to keep the house insured because you can have liability if someone is injured on the property. Renting it to keep it maintained is a good idea. If there is a home owners association, getting payments to the HOA is important because HOA dues incurred post petition are not discharged.
Answered on Nov 06th, 2015 at 8:19 PM