Posted by Dianna in Seattle on December 16, 2002 at 22:49:49:
You can screen until you’re blue in the face, and all you have is perfect tenants. But, BAD THINGS happen to GOOD people.
If you’re looking at statistics, this guy’s is in good shape. It’s the cost of doing business…there is RISK in this business.
Dianna
tenant filed bankruptcy - Posted by ken in sc
Posted by ken in sc on December 16, 2002 at 14:43:09:
Well, 10 years of owning and managing property and it has finally happened. A tenant filed bankruptcy while living in my house, actually about 5 days before the eviction trial.
The tenant filed chapter 13. Those of you who have been down this road, I would welcome any helpful hints!
Ken
Update - tenant filed bankruptcy - Posted by ken in sc
Posted by ken in sc on December 18, 2002 at 08:12:41:
It appears that it will go down this way.
Not too bad. I would not get the back rent from her anyway. She has been “injured on the job” and has a snake lawyer trying to get her a nuisance fee. I dont need that type in my house. Take the loss and move on.
Ken
Re: tenant filed bankruptcy - Posted by mike
Posted by mike on December 17, 2002 at 21:01:00:
Do not stress, you are not in that bad of a situation, and the most you might lose is past due rent. When a renter files for bankruptcy, you can no longer legally try and collect anything owed prior to the date of filing. However, if the tenant wants to stay in the property, they must pay upcoming rents or face the normal eviction as per your lease and local laws.
The most important thing to do right now, is contact the tenant and find out their intentions and then contact the bankruptcy Trustee (find your local bankruptcy court and ask who it is, you will need the tenants filing case number when you ask) and ask how to proceed if you need to get the tenant out. Also, if you are owed back rents, ask the Trustee where you stand in line and what you need to do (and if you are owed and it is considerable, now you need an attorney experienced in BK to help you hold your position, but only if the back money warrants the legal expense of course!!)
Hope this helps…merry xmas, tis the season!!
Mike
Re: tenant filed bankruptcy - Posted by Al - So Cal
Posted by Al - So Cal on December 16, 2002 at 16:05:13:
See an attorney immediately. Youre hurtin. You are not screening tenants correctly and youll
pay for it.
You do a credit check and an unlawful detainer check
right off the bat. And analyize type and time on the
job.
EITHER YOU HAVE THE LEVERAGE OR THE TENANT HAS THE
LEVERAGE.
Re: Update - tenant filed bankruptcy - Posted by MoniqueUSA
Posted by MoniqueUSA on December 18, 2002 at 14:32:07:
Ken,
Thanks for posting back what you found. Glad to see that you’ll come out of this relatively unscathed.
MoniqueUSA
Re: tenant filed bankruptcy - Posted by phil fernandez
Posted by phil fernandez on December 16, 2002 at 17:09:12:
Al,
Your comment that Ken is not screening his clients makes no sense if you read his post thoroughly. Ken said that this is the 1st time this has happened in 10 years and Ken has about 100 rentals. I’d say that Ken is doing a tremendous job screening. One in 10 years times 100 rentals equals one in 1,000.
Furthermore, a tenant can file for bankruptcy anytime. I don’t think it’s necessarly really related to how well you screen them. Everything could have been good when qualifying the guy with good credit etc. Things later happen and the tenant files for bankruptcy. Sometimes hard to control that.
Re: tenant filed bankruptcy - Posted by Al - So Cal
Posted by Al - So Cal on December 17, 2002 at 14:58:16:
You`re right! I plead stupidity as my defense.