Can I cancel my apartment lease or rental contract when I file bankruptcy?


When we file bankruptcy, we can list and cancel any contracts you currently have.  So, if you have an old apartment lease that is still coming after you, then we can list that lease and landlord in the bankruptcy and discharge those debts.  We simply list the lease or contract in a section called Schedule G:  Executory Contracts and Unexpired Leases, and then notify the creditor (your landlord) whether you want to assume or reject the lease.  This cancels the remainder of your contract, and you are not liable for any more monthly payments.  (The bk also discharges any payments you missed).

Now if you are trying to cancel your current lease or rental agreement, it gets a little more tricky.  If you are still living there, then we can cancel the lease, but you have to move out.  Any charges you incur post-petition (after filing) are charges that you will still have to pay.  Even worse, your landlord can evict you for cancelling the lease and/or for nonpayment.  The bankruptcy doesn’t stop this.

So if you want to cancel a current lease, then you either need to move out prior to filing bankruptcy, or you need to have a place ready to move into almost immediately.

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