Bankruptcy from the outside

[GNash]

What is the name of your state (only U.S. law)?
Been in lease to own situation for several years. Found out owners had filed bankruptcy & not making mortgage payments for mths though we were paying them. We stopped paying the lease payments & pursued loan. We closed & have a mortgage on the home. We also paid all closing, late fees, fees to their BR attorney & took the home as is. They are now asking for the missed leased payment. Do we owe it? Are they supposed to have income on a home that their atty had to release for sale anyway? Want to do the right thing - pls inform. Thank you.

[racer72]

Do we owe it?

Technically yes, their failure to pay on their mortgage does not release you from your obligation to pay the lease. You would probably lose in court if sued.

[bigun]

Likely, they won't sue since you were in default within 180 days of there filing date they'd have to turn any winnings over to the trustee.