Has anyone had a tenant declare chapter1 bankruptcy before?

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  • Dick RosenPro Member
    Property Manager · Gilbert, AZ · Member since 2009 · 1k+ posts · 451 votes
    5y

    You can't take any action, but you should contact your attorney to keep you in line with the BK

  • Specialist · OverTheRainbow · Member since 2020 · 607 posts · 909 votes
    5y
    Originally posted by @Marina Thai:

    Has anyone had a tenant declare chapter 11 bankruptcy before? Any suggestion what action to take.  Thanks

    Once you receive official notice from the bankruptcy court of the filing, you can get a PACER account and follow the court filings. You hire an experienced bankruptcy attorney to file a claim against the estate for whatever amount you are owed. Depending on how many creditors there are, where you fit in the pecking order and how much money is available, your claim will eventually receive some money or equity if the plan is approved. They are trying to stay in business, not sell everything off. Sometimes it's in your best interest to help them succeed so that you protect the amount owed to you. Your attorney will advise you.

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