Who is responsible for expenses (e.g., water bills) of investment real estate after it becomes part of a bankruptcy estate?

Question

Who is responsible for expenses (e.g., water bills) of investment real estate after it becomes part of a bankruptcy estate?

Anonymous Feb 5, 2011 3 views 1 answers

I filed for bankruptcy in 1999, and my bankruptcy estate incldued several single family homes that I rented out as investments. The investment homes were eventually forclosed and sold in 2000 and 2001 (automatic stay was lifted for the foreclosures). I was discharged in October 2000, and the case was closed in April 2003. I am now receiving water bills frm the City of Chicago claiming that I owe for water service on several of the properties. I'm clear that I probably don't owe for water service before I filed bankruptcy because those bills would have been discharged. And I'm clear that I should not owe for water service after the property was sold through forclosure to a new owner. But what about the period (post filing, pre-sale) when the property was part of my bankruptcy estate?

Kristy Hernandez · Accepted Answer · 2026-06-15T10:34:12+00:00

Think of the date that you filed the bankruptcy case as the most important date for determining what bills you have to pay. All debt that was incurred prior to date of filing is discharged, all debts incurred after the file date are still owed by you. This means that any bills for services rendered from the date of filing the case to the date of the foreclosure are your responsibility.

Who is responsible for expenses (e.g., water bills) of investment real estate after it becomes part of a bankruptcy estate?

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