Tenant Filed Bankruptcy
Hello BP family,
We filed for eviction court (tenants past due in rent) and the hearing was supposed to be today. However, I received mail two hours before court regarding a notice to reset/possible dismissal with a new court date in May, 2020 due to the tenants filing a chapter 7 Bankruptcy.
The attorneys we are consulting with want to charge 3k plus (at a minimum). This is our first and only rental property and these are our first tenants.
Has anybody ever went through this or can advise any next steps? We went to the courthouse downtown and were told we can file a Motion For Relief of Stay for $181.00, is this the best and only option? Cash for keys? Anything?
Thanks so much,
Craishia
Most Popular Reply
This doesn't happen a lot but the law has caught up to "Bankruptcy Abuse" and when a landlord has an eviction judgement in hand, it remains in effect now. But when you don't have the judgement yet, here's what needs to happen:
"The landlord can proceed with the eviction by asking the federal bankruptcy court to lift the stay. In most cases, the judge will lift the stay because a lease agreement has no effect on the value of the tenant's estate." (https://realestate.findlaw.com/landlord-tenant-law/how-a-tenant-bankruptcy-affects-a-landlord-s-right-to-evict.html).
If the tenant has damaged the property or done illegal drugs there, additional remedies are available. I would pay the $181 and proceed through the bankruptcy court. The tenant has no intent of leaving or paying you back rent - that's while they filed.
Go for the Stay and get rid of this tenant!