Chapter 7 Tenant
I have a prospective tenant who has filed Chapter 7. Can someone tell me -
a. How difficult is it to evict him, what are the procedures if he does not pay rent on time ?
b. Is he obligated to pay the rent on time or is he under some protection of the bankruptcy court that I should allow him additional time?
c. Has anyone had any first hand experiences dealing with such a tenant?
maha_s7,
"I have a prospective tenant who has filed Chapter 7."
"Can someone tell me -"
The KEY word is prospective...as in NewTenant...Right?
"a. How difficult is it to evict him, what are the procedures if he does not pay rent on time ?"
Same as the rest of the DEADBEATS!
"b. Is he obligated to pay the rent on time or is he under some protection of the bankruptcy court that I should allow him additional time?"
On TIME....
"c. Has anyone had any first hand experiences dealing with such a tenant?"
YES..I have and now ...YouHaveTheAnswers...
....as always,
GoodInvesting, Rocky
maha_s7,
Glad to meet you.
Your would be tenant would fall under the the protection of the Federal Bankruptcy Court if you rent to him.
You must first file a motion for a lift of stay, this is pretty routine and the Judge in most case approves the motion.
Once the motion is approved by the Bankruptcy Court, then you can proceed to evict your tenant.
The above poster that gave you his rendition, could have you in front of a Federal Judge on contempt charges.
However, you should consult your attorney, this would be the proper answer to your question just to make sure you are covering your bases.
John $Cash$ Locke[ Edited by JohnLocke on Date 09/07/2003 ]
maha_s7,
The above poster is 100% WRONG!
"Your tenant is us under the protection of the Federal Bankruptcy Court."
Not in ThisCase!!....
If YOUR "prospective tenant who has already filed Chapter 7"
That is it!!!....YOU are NOT included in their Bankruptcy...IT IS AFTER THE FACT!!!
CaseClosed....
LookItUp...
....as always,
GoodInvesting, Rocky
Thanks to everyone for sharing their thoughts. Let me make sure I am understanding this correctly -
1. If the new tenant has filed for Chapter 7 and the court has granted him bankruptcy before he signs the lease with me, then if I need to evict him in the future - the procedure to evict him is similar to evicting any other tenant.
2. In case this new tenant has filed for Chapter 7 and the court is in the process of granting him bankruptcy or he his in the process of filing Chapter 7, then - in case I need to evict him I have to apply to the Federal bankruptcy court.
Can someone confirm my understanding ?
Question - In case 2, how long does the process normally take ? Are there any precautions one can take ie. like collecting last months rent ...any other ideas ?
Any other risks involved in situation #2 ?
Thanks
just curios,
Which one is your case?
post is a little confusing
Chap 7. One of the actions taken to prevent an Unlawful Detainer Action. in the great State of California.
The professional type tenant who gets into possession and does not make his rent payments. You start to evict, do your notices and nothing happens so you file the Unlawful Detainer Action with the court to secure a judgement which you can abstract and have the Sheriff for a sum remove the tenant. So he files a Bankruptcy and that holds up your action until you can get a release from the Bankruptcy Court. Of course out here in California it holds up your eviction.
A game is played here that is really a lot of fun unless your are the landlord. They file a Chap 7. that protects, you are held up. One day before lst Creditors Meeting they go in and withdraw the Bankruptcy Action. You go forward with another unlawful detainer and once again they file bankruptcy and of course once again just before lst Creditors Meeting they withdraw.
The answer is to petition the Bankruptcy Court for relief from this little action. And if you doc it correctly you get it and away you go and pick up your judgement and writ of possession. Go up to the Sherifs office, pay the $2 dont you wish. and he in time goes out and gives them 24 hours to get out. If not he will conduct them with proper courtesy to the edge of the property. Then go in and take an inventory of all items still in the property. Hand the baddy tenant a copy and hand you a copy and tell the tenant if he satisfies the judgement you will give him back all of his stuff. If not you will properly advertise a sale and sell at auction all the stuff still in the house.
Now thats a lot of trouble and the real trick is to maintain a proper relationship with your tenants good and bad. I generaly buy a bad tenant out. Help him move stick a few bucks in his/her/ or the ever popular its hand. Load furniture, hold the kids, snacks to all and sundry and if it is for real help help help. This way he does not have a desire to destroy your property, blow up your car or rape your cat.
However if they are using the names Adams or Williams and have a funny accent call me. I speak Romansk a little, dunt esk, Gipsys and I get along. You handle them a great deal differently. Your main concern is to prevent them from dissasembling the house and taking it with them. Cheers Lucius
In short, if his chapter7 has already been discharged, he's clean. In fact, he can't do the same thing for another 7 years. That's why a lot of folks get credit card offers right after bankruptcy.
If his case has not been discharged, I would be wary. You could get caught up in a mess.
Hope this helps
Ronnie
It can take you up to 6 months to evict anyone regardless of filing chapter 7. How it works. Let’s say its September 1st
Start - you want to evict and give this person "LEGAL" notice, meaning you have a third unbiased party "serve" them eviction papers (Failure to pay or Termination of residency) at this point they have 30 days from the first of the month to leave. (So if they are handed the eviction papers on September 1st they have 30 days from October 1st, effectively they can stay till November 1st)
(Note rent is not late till the end of the month it is due, giving a tenant an additional 30 days, always serve both non payment and termination simultaneously)
Next - they decide not to leave on November 1st, you file for an eviction in court. Trial in 30 days, they postpone, next trial in 30 days. (At January 1st now)
In the case you file for eviction for non payment they show up with a cashiers check for the full amount, go back to step 1. (Start eviction all over or allow them to stay)
If you file for termination of residency, they may plead to the judge for more time 30-90 days, 99% of the time judge will grant a "30 day stay". Judgment for eviction now on February 1st
Next they do not leave after the "30 day stay" you go back to court to "execute" the eviction, bring papers to sheriff. (This could take up to 1 month, typically it takes 2 weeks) at March 1st.
At this point it’s almost over depending on the savvy of your tenant. (Savvy tenants file for an appeal of the first order of eviction, add 30 days, then postpone trail add 30 days) (Into May - 8 months)
If they lose the appeal, most do.
Then your tenant may write a letter pleading to the judge to not put his family on the street, they are 15 - 30 days away moving into a new place. 90% of judges will not but a family out on the street under these conditions. Add 30 days. (June 1st)
Finally you are going to kill these people and the sheriffs come to your rescue so you think, you submit the final papers to the sheriffs department, your tenant is out of legal options, although your super leeching tenant calls the sheriffs and begs for their help, you are a nasty landlord and are forcing their family onto the street, the sheriff politely takes their order and loses it, 30 days, or just places it at the bottom of their pile 2 weeks more free living.
This is all written from experience (non hypothetical) you learn the hard way.
Also a little info leases don't affect this process anyone that can prove they lived in your property over 30 days have these rights.
The kicker is, if you go into foreclosure due to these lowlifes leeching off you, they may assume the mortgage after successfully paying the bank for 6 months.
(note, a title holding trust works a little different due to the fact that the beneficiary is the tenant and is more or less asking himself to leave, but most THT are used in L/O the rules will still apply if they can prove ignorance to the contract (you manipulating swindler, how could you make some one pay rent)
It is a tough world for the nice landlord.
p.s. any judgment ignored for 7 years+ can be dismissed, so your money is gone.
Happy renting.