Posted by John Merchant on March 02, 2006 at 10:33:15:
Since everybody’s got to live somewhere, if this is to be your residence, I’d guess the BK Court wouldn’t object to your renting it…which is really all you’re doing, so far as the Court is concerned.
Having the option there might be of benefit to you down the road, when the BK’s behind you and you’re again lendable.
My only reservation here would be if you were thinking of putting up any appreciable amount of money for the option…as, while you’re in BK, that money really isn’t yours, is it?
I have recently filed for Chapter 7. I have the opportunity to lease a property with the option to buy it over the next 3 years for a good price. I am looking to sublease the property for a small cash flow.
My question is how will the bankruptcy estate effect this if I go through with the transaction. I won’t have legal or equitible title to the property, but I will have an option to purchase it and a lease for 3 years.
Would it matter if an LLC that I am an officer of was the entity that leased/optioned the property.
I am not sure if this is more a real estate question or a bankruptcy question.