Author Topic: Tenant filed bankruptcy, anything I need to do?  (Read 1031 times)

MaxRules

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Tenant filed bankruptcy, anything I need to do?
« on: November 14, 2016, 12:40:45 PM »
I just received a notice that my tenant filed chapter 7 bankruptcy. Their rent is paid and on time and I have had no issues with them in the year and a half they've rented from me. Is there anything I should know about or need to do?

DeanW5

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Re: Tenant filed bankruptcy, anything I need to do?
« Reply #1 on: November 15, 2016, 05:43:17 AM »
You canít start the evection process right away. Unfortunately, the bankruptcy filing prevents the landlord from doing so, at least in the short term.

But donít panic. Tenant still must pay until the rent is due. 
In exchange for staying in rental, a tenant is obligated to pay all of the rent and other charges due under the lease during the bankruptcy. His obligation lasts for as long as the tenant remains in possession of the premises. The lease is terminated when the you have given a notice to pay rent or to quit and the tenant does not pay rent by the end of the period of time required by state law or agreed to in the lease.

Enigma

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Re: Tenant filed bankruptcy, anything I need to do?
« Reply #2 on: November 15, 2016, 12:47:05 PM »
Nothing you need to do at the moment.  Just be aware they are having money issues and you may need to evict them in the future.

My personal belief is if someone had perfect credit then why wouldn't they just buy.  I don't worry unless they rent becomes late.

MaxRules

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Re: Tenant filed bankruptcy, anything I need to do?
« Reply #3 on: November 16, 2016, 09:17:46 AM »
Thanks for the replies. It's my understanding that they intend to stay and pay rent as normal. They have been great tenants so I hope that continues. They are probably just wiping out medical bills if I had to guess. I'll update you if things go south.