Received Notice of Bankruptcy from Tenant

[Jesse Kindra]

Hey Forum - I'm wondering if you have any advice/comments on how to handle a situation where a tenant who was delinquent also filed for Bankruptcy, I was just told by the PM that they received a Notice of Bankruptcy and are looking into options with an attorney. Besides trying cash for keys, any advice or thoughts on the best way to proceed? If I'm SOL for now, is there a timeline that I need to be aware of before any action can be taken? Note that the property is located in Berwyn. Thanks all!

[Jay Hinrichs]

Quote from @Account Closed:

Quote from @Jesse Kindra:

Hey Forum - I'm wondering if you have any advice/comments on how to handle a situation where a tenant who was delinquent also filed for Bankruptcy, I was just told by the PM that they received a Notice of Bankruptcy and are looking into options with an attorney. Besides trying cash for keys, any advice or thoughts on the best way to proceed? If I'm SOL for now, is there a timeline that I need to be aware of before any action can be taken? Note that the property is located in Berwyn. Thanks all!

Filed Chapt 7 or chapt 13? First time filer or has he filed before? Are they repesented or did they file pro per? Have they turned in their schedules or just the initial filing? There is a lot of dancing that goes on from the filing to the dismissal or discharge.

You'll need a bankruptcy attorney in the jurisdiction of the filing to file your claim and track the process. You will have to request the court to get possession back and that won't happen until after the court decides who deseves possession. Court hearings are often scheduled a month or two in advance. To get anything on the docket requires submitting the paperwork prior to the shutoff date for the next hearing.

Normally, when they file, you can't attempt to collect on debt that happened before the filing. 

However, they are supposed to start making rent payments again and you start the clock on evcition. You won't be able to evict without a court order but if you treat things professioanlly and track payments and keep the paperwork the court will be convinced the filer isn't showing "good faith" and eventually grant the eviction if they aren't making the payments.

That all is in normal times. Are things back to normal? I don't know, you'll need to ask your attorney. 

 I had one do that to me and cant recall if it was 7 or 13 but I do remember the trustee ordering me to give back the last 3 to 6 months of rent she paid. talk about insult to injury.