Posted by JohnBoy on October 01, 2003 at 22:29:33:
Move within what notice period?
If the tenant files BK (chapter 7) the court issues a stay. If the tenant pays rent they can stay. If not, you must motion the court for a lift of stay. Then proceed with eviction.
If they file chapter 13 they don’t have to pay any back rents owed until a plan is submitted and approved by the court. They will have to pay on going rent and any unpaid back rent will be paid over 3 or 5 years depending on the plan.
Either way, the process could take several months depending on the court. I had a tenant that got 7 months of free rent. The rent past due up until the day of filing the BK is discharged. Any unpaid rents beyond the filing date they remain liable for.
Tenant filing bankruptcy, please advise - Posted by Scottie
Posted by Scottie on September 30, 2003 at 19:59:36:
I have learned my tenant is considering filing for bankruptcy. If she does this, will she be obligated to pay my rent or will she be protected under the bankruptcy law?
I’ll give you the generic scenario. Tenant files for BK, it puts a “stay” order on all collection efforts. This is only justice delayed, not justice denied. Landlord needs to hire an atty to go into the bankruptcy court and request “relief from stay” so the landlord can proceed with the eviction.
Isn’t a lease an executory contract? And as such, doesn’t it have to be accepted or rejected in the BK petition or the intial hearing?
I’ve been told a motion for relief from stay is not necessary for rents. If the tenant accepts the contract, then the past due amount must be cured and the rent paid as agreed. If the tenant rejects the lease, they must move within the notice period. Any past due amount is then treated as an unsecured claim.