Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Personal Finance
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 13 years ago on . Most recent reply

User Stats

56
Posts
9
Votes
Peter Lee
  • Real Estate Investor
9
Votes |
56
Posts

Automatic Stay for tenant that just filed Bankruptcy

Peter Lee
  • Real Estate Investor
Posted

I need your help guys,

I live in Las Vegas NV and this month, my tenant was late on her payment. So, I served her with a 5 day pay or quit.

Today, I just got an email from her attorney saying that she just filed for BK and that I can't do anything about it because of this automatic stay.

Has anyone ever tried to file for a motion for relief from automatic stay?

What happens when I get a court date to meet with the judge?

My lease says that if she defaults in her lease, that forfeits her security deposit, however, her attorney is telling me that I have to pay it back due to the forfeiture clause!?!?

Please Help! :oops:

Most Popular Reply

User Stats

155
Posts
41
Votes
Replied

Couples points: (1) the attorney for the tenant is correct that you are barred from pursuing your eviction action due to the imposition of the automatic stay. The remedy would be to enter the case and file a motion for relief from stay. This process is not pro se friendly and I am not sure you can even get your motion argued so the issue with appearing in front of the court may never happen. You most definitely should get BK creditor advice if you want to continue with your eviction.

(2) as for your security deposit, the attorney has no right to tell you that it must be forfeited. However, the bankruptcy trustee can claim the deposit as an asset of the debtor's estate if the debtor does not exempt it. This would then make you a creditor and you may be able to recover the deposit back based on your claim. You should make a distinction who you are talking to and who they actually represent.

Hope this helps a little.

Loading replies...