Legal Question in Landlord & Tenant Law in California

landlord in foreclosure and chapter 7

My landlord has filed a chapter 13, which was dismissed for not filing schedule. One month later file Chapter 11, without submitt same schedules and just converted to chapter 7. He has less than 8 days to get his schedules in before this bankruptcy is dismissed as well.

I need to know as a paying tenant, what are my options. Do I continue to pay rent. I am trying to reach the attorney of the lender to purchase the property directly from them. Landlord is also in breach of contract for not honoring lease with option to purchase contract.

Can I press criminal charges against landlord for fraud and intentional deception.


Asked on 10/13/08, 1:27 pm

1 Answer from Attorneys

David Gibbs The Gibbs Law Firm, APC

Re: landlord in foreclosure and chapter 7

First, you cannot press criminal charges for any of the actions you describe - these are civil disputes, and no district attorney will take them on. Second, with respect to the bankruptcy, until someone from the Court or the US Trustee's office, or the Chapter 7 Trustee's office notifies you officially otherwise, you must continue to pay rent to the landlord - his bankruptcy is irrelevant to your obligations as a tenant. As for the contract to buy, I am assuming that the landlord will reject the contract in his bankruptcy, which effectively means you are out of luck. You can attempt to file a claim for damages for his failure to honor the agreement in the bankruptcy, but if he is like most Chapter 7 bankruptcy debtors, there will be no payment of any claims. You will want to consult with a local bankruptcy attorney to determine if there is any value in your pursuing a claim. You may also attempt to file a complaint in the Bankruptcy Court seeking specific performance of the option, however, you will again need to consult with a local bankruptcy attorney as the action will now have to be filed in Bankruptcy Court. Finally, the lender can do nothing to foreclose on the home, or sell it to you without bankruptcy court approval.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.

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Answered on 10/13/08, 2:25 pm


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