What Happens To My Apartment Lease In Bankruptcy?

Wondering about what filing a chapter 7 does to your apartment lease in bankruptcy is only natural. Filing for bankruptcy can be a challenging process. It often raises concerns about how it will affect various aspects of one’s financial life. If you live Oklahoma and are considering bankruptcy, it’s important to understand how this decision might impact your residential lease. It is also important to understand that the process although appearing to be stressful is not as bad as it looks.

Apartment Lease in Bankruptcy is Protected

When you file for bankruptcy, an automatic stay is immediately in place. This legal provision halts most creditors from collecting debts, and this includes landlords from evicting tenants for overdue rent. However, there are specifics that you need to be aware of, depending on the type of bankruptcy you file.

Chapter 7 Bankruptcy And Your Lease

Under Chapter 7 bankruptcy, where the creation is to discharge most of your unsecured debts, the fate of your lease can vary. Bankruptcy law considers a lease as an executory contract. This means you’ll have to make a decision on whether to assume or reject the lease. Assuming the lease means you want to continue living in the property and keep making payments. Rejecting it means you want to end the lease and discharge any owed rent.

If you’re current on your rent and want to stay, you can usually do so by continuing to make timely payments. However, if you are behind on rent, the landlord can ask the bankruptcy court to lift the stay and allow an eviction.

Chapter 13 Bankruptcy And Your Lease

Chapter 13 bankruptcy works differently. It allows you to reorganize your debts and make a plan to pay them off over three to five years. If you are behind on rent, you may be able to catch up on missed payments through your repayment plan. As long as you make these payments and continue to pay your current rent, you can generally avoid eviction.

Consult With A Bankruptcy Attorney

Navigating the complexities of bankruptcy and understanding how it affects your residential lease can be daunting. It’s often in your interest to consult with a knowledgeable bankruptcy attorney who will provide guidance based on your specific situation. They can help you understand the nuances of Oklahoma’s application of bankruptcy laws.

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Oklahoma Bankruptcy Lawyer

Filing a chapter 7 in Oklahoma does not automatically mean you will lose your apartment lease in bankruptcy. Whether you can retain your lease depends on the type of bankruptcy filed, your current lease status, and your ability to continue making payments. It’s crucial have proper information about your options. You can assure this by seeking professional legal counsel to ensure protection of your rights and interests during the bankruptcy process.

If you find yourself needing further clarity on this topic or seeking representation, don’t hesitate to reach out to the Tulsa Okla. bankruptcy lawyers at Kania Law Office at (918) 743-2233 or online for personalized assistance and solid guidance.