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Updated over 13 years ago on . Most recent reply

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

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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.

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