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Renting a House During Bankruptcy

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From Quick Guide: Chapter 11 Bankruptcy Roadmap

Summary: Rent a house during bankruptcy by gathering a copy of the lease and obtaining permission of the Chapter 13 trustee. Petition the courts and file a motion with the judge to rent a house during bankruptcy with information from a lawyer in this free video on bankruptcy.

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By Andy Forman
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Andy Forman, Attorney at Law, has been in bankruptcy representation for over two decades and has lead council in over 3,000 bankruptcy cases. Forman is a member of the Florida Bar and...read more

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Video Transcript

"Well you filed a Chapter 13 re-organizational bankruptcy and you have decided to move out of the house and you want to rent the house. Hi I'm Andy Forman and I'm a Consumer Bankruptcy Lawyer in Tampa, Florida and I represent debtors in Chapter 13 bankruptcy. Sometimes the debtor needs to rent a house during bankruptcy. The bankruptcy code particularly Chapter 13 requires that the debtor obtain permission of the Chapter 13 trustee in order to enter into a lease whether it be for a shopping center or a house and in order to do that you would ask the trustee for permission to do it. The trustee would typically ask for a copy of the lease so we can determine its terms and conditions and what security deposit is required. Chapter 13 deals with your disposable income so the trustee is going to look at how much money you are being asked to spend for rent and make an inquiry whether or not it is reasonable. Typically the payment amount is reasonable and there is a reasonable necessity for it the trustee is going to be able to give you that permission and you would be able to rent that house. If a trustee decides that it is not appropriate to give you permission it is not the end of the event. You have the ability to petition the courts, to file a motion and the Judge will decide whether it is reasonable and appropriate. I'm Andy Forman. Good luck with your Chapter 13."

eHow Article: Renting a House During Bankruptcy

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