A business cannot file a chapter 13. But a person can be evicted if he does not pay rent.
Normally the bankruptcy filing has nothing to do with whether or not the tenant has paid his rent. A landlord does not have the right to evict a tenant simply because the tenant filed chapter 7 unless that is part of the lease. The terms of the lease determine if the tenant will be evicted. If the tenant pays the rent, he should not be evicted.
The landlord's bankruptcy has nothing to do with the tenant. The tenant still owes the rent.
It seems there is no help. There is copious information for the tenant screwed under a landlord in foreclosure, but a dearth of the same in relation to a tenant renting from a landlord who enters into chapter 7 bankruptcy. It is a such a fertile ground for fraud, and deceptive practice.. and yet no where to turn. Any body out there???
Bankruptcy does not relieve a tenant from paying his rent: it's not a debt. Rent is due in advance of the rental period and is not an extension of credit. Oh, and a landlord cannot evict a tenant simply because he filed for bankruptcy.
Usually it means that you can't sue your tenant in regular court, you have to go thru the bankruptcy court. It really shouldn't mean much for you, tho, your tenant will need to keep paying rent, or move out.
i was a landlord in PA trying to evict a tenant who filed for chapter 7 to avoid eviction. Only thing i could do was petition the courts for a relief from stay of bankruptcy to continue with the eviction. Without doing that, the tenant would be protected under bankruptcy law. However, getting the relief from the court can take a month or longer. The alternative is to wait it out until the bankruptcy discharges or gets dismissed, then you can continue with the eviction. Good luck if you have a smart tenant, they will find every loop hole like mine did. It seems like tenants have more rights than landlords.
When a tenant files for bankruptcy, this will apply to any money tenant owes. In the case of rents, which is not a form of credit, you still must pay to landlord your rent or face the probability of eviction. If you owe your landlord back rent and declare bankruptcy, then you can include this back rent as part of your debt. Back rent is considered a form of credit, because you owe this money to your landlord and he has continued to grant you the right to stay there. It should be noted that whenever a landlord commences eviction proceedings against a tenant, it is never on the grounds of owing back rent. Your landlord's claims against you in small claims court covers that issue.
Bankruptcy has nothing to do with the tenant. If a bank forecloses on the mortgage, US federal law requires the bank to give the tenants a 90 day notice to quit, if they want the building emptied. But, it could be that the landlord will survive the bankruptcy, and there will be no foreclosure.
It depends on the way the house is included in the bankruptcy. If the mortgage is up to date and the landlord is reaffirming the mortgage, there should be no effect. If the landlord is abandoning the property to the mortgagee, you will either get a notice to start paying rent to the mortgagee or a notice to quit or both. Talk to a bankruptcy lawyer right away, as there are some things you may be able to do to delay things or get help moving.
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The basic rule is as follows: if your landlord files bankruptcy that is a matter between your landlord and his creditors, not you, the tenant. You are still required to pay rent or be evicted, as long as your landlord has control over the property. This applies to whether the landlord has filed for bankruptcy or if the property is under foreclosure. In either case, if you end up staying on the property, the new landlord will provide further instructions on whether to stay or to move.
The possessive forms are landlord's and tenant's; for example:The tenant's apartment is the best one in the landlord's building.