QUESTION
If a tenant owes back rent, is it filed as secured claim in chapter 13 bankruptcy?
Asked on Feb 20th, 2013 on Bankruptcy - North Carolina
More details to this question:
A tenant owes 6 months of back rent. Is this filed as a secured claim under chapter 13 bankruptcy in the middle district of Georgia?
5 ANSWERS
Back rent is considered an unsecured creditor since there is no property to secure to it, such as a car or home.
Answered on Feb 24th, 2013 at 8:00 PM
Unpaid rent is not a secured debt unless the landlord has some collateral. Secured debt is debt where the creditor has the right to repossess or otherwise recover property. Please reconsider your decision to file bankruptcy without an attorney as it will be the question you don't see to ask that will trip you up.
Answered on Feb 24th, 2013 at 7:17 PM
Generally, rent is not a secured debt. There could be an exception if the tenant gave some collateral as security. Mortgage payments are usually secured by a home, office building, raw land, etc.
Answered on Feb 22nd, 2013 at 12:09 AM
I'm going to go out on a limb here and say "No" back rent is not secured debt, even in Georgia (I was born in GA). It is unsecured debt.
Answered on Feb 21st, 2013 at 11:21 PM
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No, it is not a secured claim. Leases are not secured.
Answered on Feb 21st, 2013 at 3:02 PM