Can I Collect Rent If I Surrendering Rental Properties in Bankruptcy in Massachusetts?

Bankruptcy 3 views 3 answers
I have surrendered my rental property in bankruptcy. However, the property is still under my name.

Attorney Answers

3
Robert Adams ·
As long as you are the owner you can collect rents. When the FC is completed the bank or someone else will be the owner and you will no longer have the right to collect rent.
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Omar Badr ·
I note that you ask your question under the "Chapter 13" practice area. I will answer the question in terms of a Chapter 13 case, then, as the answer changes somewhat in Chapter 7. Your Chapter 13 Plan provides treatment for different classes of creditors, one of which is unexpired leases. As you have indicated you are surrendering the properties, I suspect you have indicated that the lease agreements you have with your tenants are rejected. That being the case, the lease agreement dies and your right to collect from them dies with it. Even if you could collect the rents, you would be obliged to report them to the Chapter 13 Trustee, and the Trustee would probably ask for them to be contributed to your Plan as part of your disposable income.
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