Legal Question in Bankruptcy in California

I will be filing for bankruptcy soon. I have 2 vacancies in a 4 unit building and people who want to rent them (after many months of no interest) at a reduced rent. Should I rent the units? Should I tell the new renters what my intentions are? Is renting the units out now unwise or in violation of bankruptcy laws or in anyway a bad idea?

thanks


Asked on 8/22/09, 7:01 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

It depends how the extra income will impact your reported income in the BK. It also depends on whether you expect to surrender the building in the bankruptcy. If so, a pre-BK lease with the tenants might better protect them. You should probably disclose to the new tenants that you're filing a BK and will lose the building (if that's going to be the case), so that they could make a decision whether to risk possibly being evicted in a few months.

With that said, debtors are entitled to have an income.

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Answered on 8/23/09, 1:50 am


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