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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.
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If owner files bankruptcy does tenant have to move?
Of course not.
Can a tenant dreak a lease if tenant has bankruptcy?
No.
Can a tenant be evicted in Michigan if in bankruptcy?
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.
Can a tenant sue a landlord who is in bankruptcy?
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.
How do you write a legal letter to tenants to move out because landlord filed chapter7 on home?
Bankruptcy has nothing to do with the tenants, and is not a reason for them to vacate. However, in any state except New Jersey, with a month-to-month tenancy, the landlord has the right to ask the tenant to leave at the end of the next rental period.
Will chapter7 bankruptcy clear dept?
A chapter 7 bankruptcy is the nuclear bomb of debt clearing. It will however, not get rid of certain taxes, preference payments, college loans, and other not dischargeable debts.
What does happen if a landlord keep on taking rent even if the landlord had filed for bankruptcy himself?
The landlord's bankruptcy has nothing to do with the tenant. The tenant still owes the rent.
How can a landlord collect rent when a tenant files bankruptcy?
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.
What if happens if you cosigned for car loan and the borrower files for bankruptcy?
if the consigner files bankruptcy can the borrower take the car
If a pastor files for bankruptcy can the church fund be affected?
If the pastor files for personal bankruptcy, no - the church fund can't be touched. If he files bankruptcy ON BEHALF of the church, then any and all funds and assets of the church can be affected.
What happens if a co signer files bankruptcy?
They both go bankruptcy
Can you terminate a commercial lease by filing bankruptcy?
Yes and no. A TENANT can terminate a commercial lease by filing bankruptcy. Under Section 365(b) of the Bankruptcy Code, a tenant has 120 days from filing a bankruptcy petition to either assume or reject the lease. This can be extended once by 90 days, with court permission. Unless the tenant files a timely motion with the bankruptcy Court to assume the lease (and cures past defaults and provides "adequate assurances" of future performance), the lease will automatically be deemed rejected. If the lease is at an above-market rental, or otherwise disadvantageous to the tenant, the tenant should surrender possession and bring an earlier motion to reject the lease. If the lease is at a below market rental, the tenant should consider assuming the lease and assigning it through bankruptcy. Under Bankruptcy Code Section 502(B)(6), the tenant will still be liable to the landlord for damages for early termination of the lease, but these damages are subject to a "cap" equal to 15% of the value of the unexpired lease term - not to exceed three (3) years rent. The landlord wil have an unsecured creditor's claim for these damages, and will share equally with all other unsecured creditors in the bankruptcy. If a tenant continues to occupy the premises after the bankruptcy filing, the landlord will have what is known as a priority "administrative" claim for the rental value during that period, and will be given preference over other general unsecured creditors to recover those amounts. A tenant's bankruptcy will not terminate liability under any personal guarantees given in connection wit the lease, unless the guarantor also files for bankruptcy. Depending on how the lease and the guaranty are structured, the guarantor may not be able to claim the benefit of the "cap" on damages. A LANDLORD may not unilaterally terminate a commercial lease by filing bankruptcy. Under Section 365(h) of the Bankruptcy Code, a tenant whose landlord has filed bankruptcy has the option to either treat the lease as terminated and vacate the space or to remain in possession (and continue paying the rent) for the balance of the lease term (including any extension options, if timely exercised by the tenant). There are many subtle nuances and exceptions to these basic rules and a party to a commercial lease should seek the advice of competent counsel before taking action to terminate that lease.
