QUESTION
What happens to the money I have put into the home if the homeowner has just filed chapter 13 bankruptcy?
Asked on Aug 15th, 2017 on Bankruptcy - California
More details to this question:
I’m in a rent to own contract. I have a year left in my 2 year contract to rent and moneys paid toward the house were to be deducted from the total due. Do I pay rent? Can they evict me? They filed in another state.
2 ANSWERS
1 Award
You need an attorney in that state. A bankruptcy can void out an agreement but that does not happen in every case. This is complex and you need an attorney where the bankruptcy was filed to assist you.
Answered on Oct 24th, 2017 at 6:02 PM
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You need to protect your rights in that Chapter 13 case. You need to review the schedules and Chapter 13 plan to see how the rent-to-own contract is characterized and you may need to file a proof of claim, among other things, if it is not being honored. It is possible that the owners can evict you if you don't protect your rights on time. Unless you are dealing with a very large amount, you may want to retain counsel duly licensed to practice where the Chapter 13 case was filed. Make sure the attorney represents creditors in Chapter 13 cases as not all bankruptcy attorneys do. If you retain an attorney from a different state, you may need local counsel who may charge an additional fee.
Answered on Oct 24th, 2017 at 8:10 AM