Can anyone tell me about bankruptcy and apartment leases?

Answer by  spragoo (1500)

In most states you will not be released from it, but if you break the lease and then file bankruptcy you may not be required to pay the remainder of the lease. Of course this could haunt you in the future with apartment rentals. It would be best to talk to the landlord before filing the bankruptcy.

Answer by  scott56 (15)

One way to do this if you are desperate is to get it re-rented and offer the new tenant money towards the rent. If you are paying $500 in rent, offer the apartment for $400 and you would pay the extra $100 every month.

Answer by  MaryL (117)

A lease is a legally binding contract. If you break your lease your landlord can charge you the penalties spelled out in it. You can file bankruptcy on those charges.

Answer by  bubbagump (94)

A bankruptcy proceeding is a process by which a person or firm declares to a federal court its inability to pay a debt. An apartment lease may be considered a debt in this case, and may be dissolved in a proceeding. However, the bankruptcy code gives the consumer the right to assume, assign or reject an unexpired lease.

Answer by  tamarawilhite (17883)

A bankruptcy will not terminate an existing apartment lease. It will, however, either discharge or negotiate a settlement for unpaid back rent. If you are facing bankruptcy, contact the apartment manager and explain your situation. Request a cheaper rent, smaller apartment, or both. You could also state that if they do not release the lease, you will discharge the obligation.