The rent due prior to filing Chapter 7 bankruptcy will most likely be dischargable (unless there is some reason under 11 U.S.C. §523(a) that you could claim in a very expensive Advisory Proceeding, like fraud), or it is an asset case where you can file a Proof of Claim. The tenant will be responsible for all rent and damages that accrue after the filing date. Because of the Automatic Stay (11 U.S.C. §362), you have to either ask the Bankruptcy Court for relief from the Automatic Stay to proceed with an Unlawful Detainer (Possession) or wait until the tenant receives a Discharge or the case is dismissed. If the tenant filed a prior bankruptcy within 12 month of the current one, the Automatic Stay my terminate 30 days after filing if no action is taken to extend it. Two prior bankruptcies within 12 months, there is no Automatic Stay and you may proceed with an Unlawful Detainer. CAUTION: In any State Court action, I would suggest you be represented by a bankruptcy attorney so he or she can explain bankruptcy to the Virginia Judge, along with applicable copies of the Bankruptcy Code and case law at hand.
Kenneth A. Moreno, VSB#37686
1553 S. Military Hwy, Suite 100
Chesapeake, VA 23320
(757) 486-1938
Only licensed in Virginia
Answered on Jan 19th, 2013 at 11:39 AM