QUESTION
Should I be able to collect the month of January, since it was after his declaration of bankruptcy?
Asked on Apr 16th, 2014 on Landlord and Tenant Law - Arizona
More details to this question:
I had a tenant who signed a lease in August 2013. They broke the lease and moved out on October 1, 2103. After I re-rented the apartment on February 1, 2014, I took them to court to get the months’ rent that they skipped out on. The judgment against them occurred on March 10, 2014. They did not show up to court, so I was given a default judgment. When I sent a letter asking for the funds they told me that they declared bankruptcy on December 28, 2013. Am I entitled to any of the money or am I out of luck? Am I correct?
4 ANSWERS
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Bankruptcy wipes out everything before the date they filed and none of what happened after they filed.
Answered on Apr 18th, 2014 at 6:10 PM
With the BK you are almost certainly never going to see the money.
Answered on Apr 18th, 2014 at 6:09 PM
If your Judgment was entered after they filed bankruptcy then it is unlikely that you collect anything. You should consult an attorney to review all of the relevant documents and advise you how to proceed.
Answered on Apr 18th, 2014 at 6:09 PM
You are out of luck. Your judgment is a pre-petition, unsecured debt, which means that it is a debt that the tenant incurred before he filed bankruptcy and the debt is not secured by a lien on real or personal property (i.e., mortgage, deed of trust, lien on vehicle title, etc.). You may file a claim for your debt in the bankruptcy court. If he filed Chapter 7 bankruptcy, you will probably get nothing or very little. If h filed Chapter 13 Bankruptcy, you may get something, but not like the whole amount AND any payment you receive will normally be spread out over five years.
Answered on Apr 18th, 2014 at 6:09 PM