Should I lease my house to a guy who is about to file for bankruptcy, chapter 7… or just did file?
Can he sign a lease agreement with me?
Will the lease be valid after he declairs bankruptcy?
What dangers are involved with leasing to a guy that just filed bankruptcy – as long as I think he has the ability to pay his rent?
How much would an attorney cost me to ask him/her this question?
I really want to rent my house – I’m willing to take some risk, but I don’t wan’t to be stupid.
Posted February 7th, 2010 in Bankruptcy Q And A. Tagged: bankruptcy, lease agreement, leasing, risk.
His filing chapter 7 kinds of says he has problems paying bills. If might not be in your best interest to lease him the home.
February 7th, 2010 at 2:12 pmYou should be able to get a "free" consultation with some attorneys, you just have to shop around.
You would not be smart to rent to someone who files Chapter 7. It totally discharges debt. Chapter 13 would have demonstrated a willingness to pay his debts. How sure are you that he can pay you. Don’t just take his word. Also if he had given you checks, make sure they can clear.
Just because someone is filing bankruptcy doesn’t mean they won’t pay their rent.
#1 – Check his rental history – has he paid his rent on time to his previous landlord(s). And DO CHECK THIS!
#2 – Does he have steady employment and proof of his employment. Verify with his employer that he does indeed work there.
#3 – Get a security deposit that is two times the monthly rent up front so you can have some peace of mind.
#4 – Have him pay his rent by cash, certified check or US Postal money order ONLY – Do not accept his check.
February 7th, 2010 at 2:12 pmYes, he can sign a lease agreement with you. Most lease agreements aren’t worth the paper they are written on unless drawn up by an attorney, so any time you enter into a contract such as a lease with a person you’re taking a risk. If you feel this person has the ability to pay his rent then a bankruptcy shouldn’t make you worry too much. I know an attorney who files bankruptcy every 10 years to keep his credit clear. Most attorneys will answer this question for you for free. It’s your property, and like I said, with anyone, you take a risk when you agree to rent your property to them. Good luck!
February 7th, 2010 at 2:12 pmI’m definitely not no expert ….but Red Flags shot up just reading your question. Is he the ONLY one applying to lease your pad? I personally would go with someone more secure.
February 7th, 2010 at 2:12 pmShould you? NO!…..
February 7th, 2010 at 2:12 pm