Can I continue to receive rent due from tenants after I file for bankruptcy and for how long? 9 Answers as of May 05, 2011

As a home owner, if I lose the house in the bankruptcy process, can I continue to receive rent due from a tenant after I file for bankruptcy and for how long?

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Law Office of Larry Webb
Law Office of Larry Webb | Larry Webb
The rent belongs to the bankruptcy estate and you should turn it over to the trustee.
Answer Applies to: California
Replied: 5/5/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
This is a slippery slope. Most deeds of trusts have an "assignment of the rents" clause in them. Some states have laws that specifically deal with this issue. You should consult with a local lawyer.
Answer Applies to: California
Replied: 5/5/2011
The Law Offices of Alan M. Laskin
The Law Offices of Alan M. Laskin | Jared B. Gaynor
You really need to talk to a real estate attorney about this. In some jurisdictions, receiving rent from real property while not paying the mortgage is considered fraud.
Answer Applies to: California
Replied: 5/5/2011
Ferguson & Ferguson
Ferguson & Ferguson | Randy W. Ferguson
You must ask your attorney and bankruptcy trustee.
Answer Applies to: Alabama
Replied: 5/4/2011
Ursula G. Barrios Law
Ursula G. Barrios Law | Guillermo Machado
If you are not paying mortgage that's called rent skimming and illegal.
Answer Applies to: California
Replied: 5/4/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    There may be a provision in your promissory note and deed of trust called an "assignment of rents." That would mean that the lender is entitled to rents when you are delinquent. Otherwise, you can collect the rents until foreclosure is completed.
    Answer Applies to: California
    Replied: 5/4/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    If you loose the house in bankruptcy, at the point you no longer own the house and have no right to collect rents on property you do not own.
    Answer Applies to: California
    Replied: 5/4/2011
    Law Office of David P. Farrell
    Law Office of David P. Farrell | David Farrell
    The rent you are collecting is the property of the lender, not your property, especially if you quit paying the mortgage(s). It is called cash collateral. What would give you the idea that the rents collected is your money? Feeling entitled to it is not enough. If you are wise, you will keep the money in a separate account. Failure to do so could present significant problems for you in the future.
    Answer Applies to: California
    Replied: 5/4/2011
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