Posted by Nick O on September 11, 2003 at 13:56:29:
Like I said I’m not a pro… but very good to know. Hopefully others learn from this post like I just did & make them a cash offer before they have to file an eviction.
Nick O
subject to tenant filed bankrupcy - Posted by Zman
Posted by Zman on September 10, 2003 at 13:50:36:
A L/O tenant in a property i bought subject to stop paying, and when i filed for eviction, they filed chapter 13. What should i do next. I have enough to cover the $1,050.00 mortgage, but i`m losing my profit in the deal fast? HELP!!!
Re: subject to tenant filed bankrupcy - Posted by Nick O
Posted by Nick O on September 11, 2003 at 11:58:26:
I’m not a pro but what I would do is offer the tenant $2000 to move out ASAP & try and find them an apartment they can move into tomorrow. That way you can find a new tenant buyer and recoup the money you lost. Time is money in this business and things like this can go on longer than you think.
Good Luck!
Nick O
Re: subject to tenant filed bankrupcy - Posted by B.L.Renfrow
Posted by B.L.Renfrow on September 10, 2003 at 18:32:05:
You need to immediately find an attorney who is familiar with the bankruptcy system – and most attorneys aren’t, as it’s a very specialized and somewhat arcane area of law.
There are a couple of options. The first would be to have your attorney immediately file a motion for relief of stay. The court will schedule a hearing on the motion, and if granted, you can proceed immediately with eviction for nonpayment.
At best, it will take a month or two – and probably longer if the tenant answers and contests the motion.
The other possibility is that since the tenant filed chapter 13, that means they must continue to pay their rent as it comes due, plus a portion of the arrears every month to the trustee. This is assuming their repayment plan is approved by the trustee and the court. If they adhere to the payment schedule, I don’t believe you can proceed with eviction, but if they miss a payment, you file the motion for relief of stay as above.
Whatever you do, you CANNOT attempt to proceed with eviction or even contact the tenant to discuss the past due amount until and unless the court grants the relief of stay.
Unfortunately, you are more than likely going to have to eat at least a couple months of payments without any income.
Brian (NY)
Re: subject to tenant filed bankrupcy - Posted by Terry (Houston)
Posted by Terry (Houston) on September 10, 2003 at 14:11:43:
Get a lawyer. Fast!
One who deals with real estate issues such as this. I think it is a Relief of Stay that needs to be filed but that is what a lawyer will need to tell you.
Trust me, whatever you pay them will be worth if if they get it done quick.
Good luck.
Re: subject to tenant filed bankrupcy - Posted by B.L.Renfrow
Posted by B.L.Renfrow on September 11, 2003 at 13:08:08:
He said the tenants have ALREADY filed chapter 13. Once they’ve filed, it’s a violation of federal law for a creditor (which the landlord is) to even contact the debtor. What you are proposing would be reasonable if it weren’t for the BK. But since the debtors are now under protection of the bankruptcy court, what you are proposing is that the landlord violate federal law and risk the resulting penalties. He will get much better results by following the law and going through the prescribed remedies, not by trying to be a cowboy who thinks the laws don’t apply to him.
Brian (NY)