Expert: Norma Duenas - California Bankruptcy Attorney - 12/22/2009

Question
My family and I are renting a house in Texas. I have been receiving advertisements in the mail in regards to the foreclosure of the home within two weeks and bankruptcy flyers, I believe its supposed to be for the owners of the home. I looked up on public records "bankruptcies" and believe this house was on the list showing Chapter 7, same Street name but not a specific address. If the owner is filing Chapter 7 and having a rental home, is it safe for me to continue paying rent? I have a year lease; up in June 2010. Thank you!

Answer
Your best option to know the status of the home and whether you will need to move is to contact the homeowner. If the homeowner has filed for Chapter 7 bankruptcy and he is surrendering the home in the bankruptcy then you may need to move. Although you have a lease an owner in a bankruptcy proceeding can specify that he does not want to continue with the lease as part of the bankruptcy.

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