QUESTION
If my tenant is filing bankruptcy and stopped paying for rent, what should I do?
Asked on Aug 18th, 2015 on Bankruptcy - California
More details to this question:
I have a condo is managed by Century 21. They called me saying that my tenant is filing bankruptcy and has stopped paying for rent. They already started the eviction process but don't know long they can get rid of them. I had been out of job for 7 months and just found a new job. If they don't pay the rent for 2 months then I have to file bankruptcy. My mortgage payment and equity loan is more than or equal to how much my house is worth. I'm thinking about giving up that condo. What should I do? I made it through my unemployment. I really don't want to file bankruptcy but what else can I do? How long is the eviction process take? Will I win it in court?
7 ANSWERS
You should evict the tenant immediately. There is no automatic stay for the tenant, unless the tenant pays some money (rent money) into the bankruptcy court registry, and the eviction hearing is done very quickly in the bankruptcy court. Chances are tenant will not file anything, since in all likelihood he or she has no real "defense" to the eviction action. Takes about six weeks or so (this advice is based on what is contained in your email. I do not have the benefit of reviewing the lease agreement, bankruptcy petition, or any other pertinent documentation).
Answered on Aug 20th, 2015 at 12:38 PM
Derek W. Freeman
Eviction is the process to get rid of a tenant who doesn't pay rent. In a bankruptcy, that process is complicated by the imposition of the automatic stay. Before you or your management company begin eviction proceedings, you need to get an order from the bankruptcy court allowing you to do so. If you don't, you will be in violation of the automatic stay and subject to penalties. Once you have that order from the court, you can evict the tenant. Any money owed in rent prior to the bankruptcy filing will be discharged. However, any money owed in rent AFTER the bankruptcy filing date will not be discharged. You can try to collect that rent if you are so inclined. But first you have to get approval from the bankruptcy court in the form of a relief from stay.
Answered on Aug 19th, 2015 at 3:35 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Yes, you will win the eviction in court. It takes a couple weeks.
Answered on Aug 19th, 2015 at 11:11 AM
Criminal Defense Attorney serving Alhambra, CA
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Francis John Cowhig
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Once a bankruptcy is filed, there is an automatic stay on all court actions, including unlawful detainers. You will need an attorney to file a motion in the Bankruptcy Court to have the stay lifted so that the unlawful detainer case can go forward. It is impossible to say how long that will take.
Answered on Aug 18th, 2015 at 9:26 PM
Go through with the eviction process bankruptcy does not stop eviction process.
Answered on Aug 18th, 2015 at 4:00 PM
Litigation Attorney serving Bakersfield, CA
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Dessy & Dessy
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If the tenant files bankruptcy, you have to go into the bankruptcy court and obtain an order for relief from the automatic stay. It is questionable whether this additional expenses justified given the lack of equity in this rental unit.
Answered on Aug 18th, 2015 at 2:54 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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You need to get an attorney to file a motion for relief from stay for the unlawful detainer to proceed. Getting an order lifting the stay to proceed with an unlawful detainer does not usually take very long about a week or two and then the process goes back to the usual UD process.
Answered on Aug 18th, 2015 at 2:41 PM