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madrenter · Feb 10, 2008, 09:47 PM

I am a military member from VA who was notified that our property owner filed for bankruptcy. We have to be out of the property within 30 days? Do I have any right to stay until my lease ends? Will the bank or new owner honor our lease? Please help? :confused:

Fr_Chuck · Feb 10, 2008, 09:51 PM

If they go bankrupt, the bank or the new owner has no legal obligation to honor your lease. Who gave you the 30 day notice. Until the bankruptcy court takes possession of the property the current owner has to honor the lease.

madrenter · Feb 10, 2008, 09:59 PM

The current property manager dropped off a typed letter and gave us a quick update about the bankruptcy. I deploy 1 June and do not want to pay to move my family for only 3 months. Can you describe the timeline? Will I be kicked out prior to 1 June. Military move me mid May.

Fr_Chuck · Feb 10, 2008, 10:05 PM

Basically the day the court takes the property, they can give you a very quick eviction 3 days to 30 days.
What is the update, do they have a date set for court ? You may talk to the bankruptcy trustee and see if some arrangement to pay the rent to the court till June can be arranged, it is worth a try.

madrenter · Feb 10, 2008, 10:27 PM

11 Feb is the first court date. Is the name of the bankruptcy trustee public info or do I have to depend on the property mgr/owner for this info? Thanks for your help. The uncertainty of the entire situation and the fact I have kids and a house full of furniture, the risk is high. May be best to move? What do you think?

George_1950 · Feb 11, 2008, 09:43 AM

Just hold on... Do you have a notice of bankruptcy? If not, you need the case name and number; you may be able to access some information about the case online. Is the owner an individual or corporation? When does your lease end? If you are paying your rent, why wouldn't the Trustee or anyone else want to keep you as a tenant?

ScottGem · Feb 11, 2008, 09:57 AM

First you never answered the key question. Do you have a current lease in effect? If so, then owner has no right to break the lease. But if you are on amonth to month lease, then he can order you out with 30 days notice.

If he is selling the house, then the new owner has to honor your lease. But if the house is being foreclosed on or deeded back to the bank as part of a bankruptcy, then the lease is voided.

However, considering your circumstances, I doubt very much if anyone is going to evict a member of the armed services under such conditions. I would contact your base PR people and see if that can put some pressure on whoever is involved to let you stay until June

madrenter · Feb 11, 2008, 03:21 PM

Yes. I have a current lease until Mar 09. I do not have a notice of bankruptcy, just a letter from the property manager informing me of future actions. I have paid rent every month on time. The owner, according to the property manager, is a person not company. I have not talked to anyone requesting an extension to June because the property manager does not have any information or numbers. He told me he was instructed not to talk about it with any tenants. I think this is a bankruptcy so the house will be transferred to the bank. Thanks for your help. Next step base LEGAL/PR office.

George_1950 · Feb 11, 2008, 04:05 PM

It isn't as simple as transferring to the bank; banks ordinarily will not do that. Rather, they prefer a foreclosure, which means (usually) one month's advertising before a sale, usually the first Tuesday of the month. You may have additional protections under the Sailers and Soldiers Relief Act.

ScottGem · Feb 11, 2008, 04:08 PM

Ok, so if you have a lease that extends to Mar 09, then you can't be thrown out unless something happens to void your lease. If bankruptcy or foreclosure is just starting you should be OK to move in May.