Personal Bankruptcy Leases- Storage Facilities

[Tiger1]

Are payments on leases which are in arrears allowed within a Chapter 13 plan? How would that work for storage facilities? Would the facility have to grant access to personal belongings upon receiving the stay, or can they keep the unit locked out until they receive payments from the plan?

 

[Michael Wechsler]

My understanding is that payments on a storage facility which contains your personal property may be dischargeable but that doesn't mean you have a right to clear out the property. This may involve the facility owner contacting the bankruptcy trustee and this makes sense to me. Imagine what it would be like if everyone undergoing bankruptcy would be allowed access to their spaces where their assets are kept without any restraint or checks and balances -- it's clear that the property could disappear quickly -- with no offense to you personally.

I'm very sorry for your situation and hope things work out for you. There are local laws that do deal with self storage facilities in various jurisdictions.

Are payments on leases which are in arrears allowed within a Chapter 13 plan? How would that work for storage facilities? Would the facility have to grant access to personal belongings upon receiving the stay, or can they keep the unit locked out until they receive payments from the plan?