You are more protected against this client then any client not involved in a chapter 7 bankruptcy, unless he has a back balance and does not reaffirm his debt with you. If he files Chapter 7 and does not reaffirm his debt with you and attempts to leave early you will not be able to go after the remainder of the debt on the lease. But if he does not pay rent on that lease, you can evict him and collect on the rent owed. Chapter 7 bankruptcy only discharges debts prior to the filing of the chapter 7 bankruptcy petition, making any rent due after the filing of the chapter 7 bankruptcy petition excluded from the chapter 7 bankruptcy filing. Basically if you rent to him and he doesn't make payments, even if he did not reaffirm, any payments not made after the filing of the chapter 7 bankruptcy are still his debts and will not be discharged in a chapter 7 bankruptcy.

I have responded to your inquiry according to the laws of Massachusetts, where I practice. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options.

Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.

Joseph F. Botelho, Esq.

BOTELHO & ASSOCIATES, LLC
Attorneys At Law

www.massachusettslawyeronline.com

126 Shove Street
Unit 202
Fall River, MA 02724

Office: 888-269-0688
Cell: 508-801-6747
FAX: 877-475-8147

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