QUESTION
Can I file bankruptcy on a rent to own home?
Asked on Dec 07th, 2013 on Bankruptcy - Florida
10 ANSWERS
William Rhymer
Usually yes. However.
Answered on Dec 20th, 2013 at 4:50 AM
Yes. The debt will be classified by the wording in your contract. It may be construed as a mortgage or a lease. Either way, your intentions must be declared within 30 days of your case filing, whether you want to continue to honor the contract or walk away from it. The trustee has the power to assume or avoid a lease. If the trustee is not interested in it, the landlord/creditor may condition the continuation of the contract upon curing any arrearages or other reasonable conditions. If you do not agree to those conditions, you can be evicted.
Answered on Dec 10th, 2013 at 5:08 PM
You can file a bankruptcy to remove delinquent rental payments on the home you live in, but you will probably have to give up the contract you have to apply your rental payments towards the purchase of the home. Which type of bankruptcy you file (Chpt. 7 or Chpt. 13) depends on other factors, such as your income, your assets, and whether you have filed a bankruptcy in the past. You should consult a bankruptcy attorney in your area.
Answered on Dec 10th, 2013 at 5:08 PM
Litigation Attorney serving San Antonio, TX
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Graves Law Firm
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Sure. I think it goes without saying, but I'll say anyway, that what you can't do is wipe out the debt and keep the home. Good luck.
Answered on Dec 10th, 2013 at 5:08 PM
2 Awards
Yes you can.
Answered on Dec 10th, 2013 at 5:07 PM
Deborah F. Bowinski
If you are asking whether you can surrender the home and get out of the rent to own contract through bankruptcy, the answer is yes. You would remain obligated to pay rent for any days you remained in the property after the bankruptcy is filed so you might want to wait until after you move out.
Answered on Dec 10th, 2013 at 1:00 PM
Without looking at your contract on your lease to buy and without knowing if you are trying to stay and just need to catch up on your payments, this is a difficult question to answer. If you want to break the contract and discharge the back rent due, you can do that during a bankruptcy, either 7 or 13. If you want to try to stay and catch up, you might be able to do such through a chapter 13. I say might because I would need to review your contract first. Contact a good bankruptcy attorney for a consult before proceeding.
Answered on Dec 10th, 2013 at 1:00 PM
1 Award
Yes. A contract for the purchase of a home whether it is a lease with an option to purchase, or a contract for the purchase of the home is a contract that can be eliminated in a bankruptcy.
Answered on Dec 10th, 2013 at 12:59 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Generally yes, but you will be losing the "equity" you may have built up as a result of the contract. See an attorney to determine if bankruptcy is you best, or presently necessary, alternative. It is a major step and not to be use lightly.
Answered on Dec 10th, 2013 at 12:59 PM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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When someone files a bankruptcy case all assets and ALL DEBTS MUST be listed. No one can file a bankruptcy case for only "selected" debts.
Answered on Dec 10th, 2013 at 12:58 PM