What Can You Do If Your Tenant Files Bankruptcy In The Middle Of An Eviction Procedure?
What can you do if your tenant files Bankruptcy in the middle of an eviction procedure? the tenant filed on the day before L/T court and they said i have to wait until her bankruptcy case is settled before i can do anything. meanwhile i get no rent which is the reason we are in landlord tenant court in the first place...Help
I am in NJ
I thought eviction - rent payment - had Nothing to do with bankruptcy? Am I misinformed?
WOW....
I have had several applicants recently who are filing for bankrupcy as they walk away from their homes.
Should I never rent to these people?
I thought that only loans were wrapped up in a backrupcy. Not tax leins, student loans or rent.
?
BK stops everything including foreclosure. check your facts before saying things.
Wahid,
You were asking about eviction not foreclosure. Two very different situations. Yes bankruptcy automatically stops foreclosure becuase the house is an asset of the person in bankruptcy. In an eviction case, the person is renting and does not have claim to the property. Bankruptcy Court does not automatically cancel an eviction.
Again, did this tenant give the eviction court anything to stall the eviction? Just them telling you they filed BK does not mean anything if they do not follow the right procedure.
JS.
smithj,
Dont worry about answering this question, wahid seems to know everything. Im not even sure why he posted this question.
I would say you buy and keep then in the end.
Years ago when I managed apartments we discovered an interesting phenomenon. During a slow rental period we gave away microwave ovens as an incentive to sign a new one year lease.
Simultaneously we ran adds for a free 1st months rents with a new one year lease.
$80 microwave ovens outsold $400 free rent by about 3 or 4 to one.
The lesson: offer to buy the w/d if the tenant will sign a 2 year extension on their lease and they can take the w/d with them at the end.
Regarding rental insurance. I have a clause in my contract informing tenants about the necessity of having renters insurance, stating that I do not insure their belongings. I also have a separate document that I have tenants sign; stating that they DO elect or they DO NOT elect to have renters insurance. They initial by their choice, sign and date the document and I keep it in their files. One fine lady in another state and from another forum says she will not rent her places until the tenants HAVE purchased renters insurance. In other words, she REQUIRES them to have their own insurance. I am thinking about going this route but need to check and see if I can do this in my state.
Heathermarie wrote “With Christmas coming up, it will be weeks before we get this fixed”
Heather. It has taken me a long time to realize this but I am starting to get the idea that maybe it is better to have someone else do the work (or at least most of it) and get the place re-rented and start collecting some money that to wait for me to do the work and save a few $$$$. Not only do you get rent money but maybe your insurance won’t be canceled or not pay off in you have another problem while the place isn’t being rented. Isn’t there something about insurance not paying for properties that sit vacant for a period of time (however long that is??? ) You may want to ask your insurance agent.
By the way, I went to college at Southern Baptist in Walnut Ridge way back. Discovered the Gym there in Jonesboro, starting going there and having so much fun I only went to Western Civ class three times during the semester. Needless to say I didn’t have a very good grade for the class 
Just curious - what was the end result on this, or where are you with repairs and the insurance company?