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Originally posted by Tim20

Hi all! I have given my house in Mississauga on rent to a mother and two kids. She is a widow. She has been living in my house since 5 years. We have no rental agreement and even when she is drowning in her financial crisis she does pay as she can afford. Now she has decided to go bankrupt with the help of Kevin Thatcher bankruptcy service. How should she list those payments on her chapter 7 petition? As home expense or rental costs?

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The first item is. : You have NO lease agreement or any type of agreement with your tenant, none what so ever. You might have had an oral agreement and a sum that you both agreed upon as rental amount, which has been paid to you each and every month or a period that you both agreed upon. (With a clause for an increment, if any)

If she has been paying you the rent and the associated expenses, and you have provided her receipts for these, then her balance owing to you is NIL. If she intends staying there and you want to accept her as a tenant, then, you should get a lease signed by her, at least after this event, for such an occupation and an advance of funds that will suit to your liking. Alternately provide her with sufficient notice to vacate and not face a similar situation.

There are two areas in which these expenses fall in. One is considered as "Pre-Bankruptcy" and the other "Post Bankruptcy". Because it will take an inordinate amount of time to settle the Bankruptcy case.

This rental scenario will be isolated to provide the Owner of the property all or most of what the amount owed. The amount that she owes you, if she pays you now to clear your account, once again becomes NIL. IT IS A RENTAL EXPENSE. (Rental costs in this case). If she does not wish to pay you, you will also get a few cents on the dollar, just like the other debtors. (This is a Pre-Bankruptcy liability. (dues)

With the Post Bankruptcy side, whatever you both sign between you two as a lease, after such a declaration of bankruptcy, will become fully payable. Because these expenses ARE Rental expenses. No relief will be provided to her.

Kevin Thatcher bankruptcy services are the people you should contact and they are the ones to provide you with exact direction for filling the form that you are trying to help her with. The information provided to you here is only as a guidance and an explanation to get you to understand the line at which you are currently stuck at.

Can you provide a link to the form or a heading to it, just to understand the procedures.

Thanks.


FH.