Q: Can I put back rent settlement in a bankruptcy case within 90 days of the rent settlement?
A: Yes. You can.
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A:
Yes, you can include a back rent settlement in a bankruptcy case, but there are important factors to consider. If the settlement occurred within 90 days before filing for bankruptcy, it may be subject to scrutiny. This period is considered a "preference period" in bankruptcy law, where certain payments to creditors could potentially be reversed by the bankruptcy court.
You will need to disclose the settlement and all relevant details in your bankruptcy paperwork. The court will review it to determine if any part of the payment to your landlord could be considered preferential treatment over other creditors.
It’s important to consult with your bankruptcy attorney about how this settlement may impact your case. They can help you navigate the potential issues and ensure that everything is properly handled according to bankruptcy laws.
Timothy Denison agrees with this answer
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