Expert: Mark J. Markus- California Bankruptcy Attorney - 9/22/2009

Question
I am preparing to file for Chapter 7 Bankruptcy. Because of my bad credit rating I was forced to sublet an apartment from a friend without the landlord's knowledge. I pay either cash or check into his checking account, he writes the rent check to the landlord. He currently lives out of state. How should I handle this situation when filing without putting myself at risk for eviction?

Answer
Eviction isn't your only problem.  You need to have a rental agreement with your friend which validates the precise amounts you've been, and will be, paying him for rent, otherwise the bankruptcy court may determine that you've been transferring cash to your friend to hide it from your creditors, which is grounds for denial of your discharge under 11 USC 727.  

The fact that your friend may be subletting to you illegally is another issue altogether.  If the landlord finds out, you could both face eviction, but that has nothing to do with your bankruptcy case.

http://www.bklaw.com/