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  1. #1
    Join Date
    Sep 2016
    Posts
    15

    Default Missing a Rent Payment After Filing Bankruptcy

    My question involves bankruptcy in the state of: Oregon

    Hi there,

    I have a question about rent and the automatic stay with bankruptcy. I filed for Chapter 7 on Sept. 7th. At this point in time my rent was due but no eviction proceedings had started at that time. I was not behind on rent other than the current amount due. As of this date I have not paid rent for this month. My property management was included on the Debtor Matrix and I mailed a copy of the Chapter 7 filing to them as well.

    The situation is thus, my disabled adult daughter lost her SSI due to not having the paperwork that we needed to re-certify. We moved states and all paperwork was thrown out along with all of our household items by a family member that well, is not a very nice person. I am in the process of seeing about re-establishing this source of income but do not know if and or when that will happen. At the same time, a child support order began for a child that is residing in our household. Mom filed for support, then the child came to live with us shortly after. This will be taken care of as well but not for another month or so because the wheels of justice grind very slowly. This cut my husbands income in half and caused us to fall behind on everything for the past couple of months. I admit, it was the catalyst to finally file for bankruptcy. Before we had limped along trying to pay our creditors every little scrap we could.

    Currently my husband gets paid twice a month. Next time will be on the 22nd of this month. We have some money squirreled away to go towards rent and on the 22nd will add in the remaining balance to pay this month's rent. Now the big thing is, until the support is situated, we won't be able to pay rent until the 22nd of next month for next months rent either.

    How long do we have with the bankruptcy before the management company can file eviction proceedings? Does the stay remain in place until the bankruptcy is discharged since we filed before any proceedings were started? And since rent is considered an unsecured debt, is this months rent included in the discharge proceedings? I'm not sure if I'm even supposed to pay for this month, or if I just concentrate on next month's rent. We live in an area where there is a severe housing shortage and seriously cannot afford to be evicted. But if I'm still protected until the bankruptcy is discharged, and I'm able to pay on the 22nd of each month for this month and the next without fear, then I'll have no problems. I guess my fear is that I pay for this month, the 1st rolls around, the stay is lifted, I'm evicted, with no money to move into a new place or have a new place available, and on top of it all, dealing with a bankruptcy on my record.

    Thank you so much.

  2. #2
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Bankruptcy and Rent

    "If you have already filed a bankruptcy before your landlord has obtained a judgment for possession of the property, then the automatic stay stops the landlord from starting the eviction proceedings or giving you a termination notice. However, be aware that your landlord can file a motion (ask the court) for relief from the automatic stay to proceed with the eviction. Bankruptcy judges will usually grant the landlord’s request unless you have a compelling reason why the eviction should not go forward."

    Above quoted from Nolo's website.

    If I'm reading you correctly, you're rent is due today but you can't pay it, or you only have part of it.

    You can approach this one of two ways.

    Go to your landlord and tell him that you have part of the rent today and you'll have the balance on the 22d and won't be able to pay next month's until the 22d of the month and after that you'll be caught up. Admit that the bankruptcy is in progress but stress that you will make sure he gets paid and that you want to avoid eviction. If he'll take a partial payment today, get a receipt for it and try to get something in writing about the temporary payment arrangements.

    Or

    Pay nothing today, say nothing. You have 10 days from the due date before the LL can file for eviction per ORS 91.090:

    http://www.oregonlaws.org/ors/91.090

    Same applies next month. If rent is due on the 14th you have until the 24th.

    Appears that there is no need to mention the bankruptcy if you don't want to.

    Just keep in mind that if you are on month to month (no lease, no specific duration) the LL at some point could elect to terminate tenancy with the required 30 day notice due to chronic late pays. If you get that kind of a notice while the stay is in effect and hit him with the bankruptcy news, you can almost bet he will terminate your tenancy as soon as he can legally do so.

    My opinion, as a former landlord, is that I would much prefer my tenant be up front with me about the bankruptcy and I would likely accept the partial payment today and agree to wait until the 22d for the balance, ditto next month.

    Whether or not your LL is that magnanimous is anybody's guess so I'll leave it up to you to decide.

  3. #3
    Join Date
    Sep 2016
    Posts
    15

    Default Re: Bankruptcy and Rent

    Thank you for your answer. Question: If the landlord goes to Bankruptcy Court and requests to overturn the stay, will I be notified of this?

    As I said above, I filed bankruptcy on the 7th. On the 8th I received a notice on my door to pay rent or quit by the 15th. (Figured it was a crossing of letters) Rent is due on the first but i have a grace period until the 7th. I had sent a letter to my management company explaining that I had filed bankruptcy, included a copy of the bankruptcy forms, and stated that I would have the rent on the 22nd. I even secured a means via family to cover the difference I would owe for October's rent, measly $250 but makes a huge difference.

    Today I check my mail and received a notice to appear in court for eviction proceedings on the 26th. Not quite sure what to do here. I'll have the rent on the 22nd and will immediately send it out.

    Next month is covered as well to pay on time and have the court date on the 12th to overturn support, so from here on out, I'll be on time and pay in full.

  4. #4
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Bankruptcy and Rent

    Quote Quoting Caitline69
    View Post
    Today I check my mail and received a notice to appear in court for eviction proceedings on the 26th. Not quite sure what to do here.
    File a Notice of Bankruptcy Filing advising the state court of your bk. That will stop the state court from moving forward until the automatic stay is lifted.

    In reality, if you want to stay where you are you need to work it out with the landlord. Pick up the phone and call the landlord.

    Des.

  5. #5
    Join Date
    Sep 2016
    Posts
    15

    Default Re: Bankruptcy and Rent

    Thank you. I'm trying really hard to work everything out. Sadly it's a management company and from what I can tell, they have to follow procedures no matter the discussion. I live in an area that is in a housing crisis right now so this really terrifies me. No family in the area as we just moved 3000 miles to come here and the waitlist for rentals in the area run upwards of 6 months. Eeeek.

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