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Updated about 9 years ago,

User Stats

46
Posts
19
Votes
Albert Hepp
  • Real Estate Investor
  • Minneapolis, MN
19
Votes |
46
Posts

Tenant in Bankruptcy, can I DIY (Do It Yourself) and get paid?

Albert Hepp
  • Real Estate Investor
  • Minneapolis, MN
Posted

My tenant is 2 months behind on rent, and I just received in the mail a B9I Notice of Chapter 13 Bankruptcy Case, Meeting of Creditors, & Deadlines.

The tenant has listed our lease, and the 2 months he is behind, with a proposal to pay the amount over 60 months ($43.33 per month!).  The "Other Provisions" of the plan says " Debtor shall commence their monthly rent beginning 12/1/2015" which I interpret as full rent will be paid going forward.

The Bankruptcy form is a little confusing, in the standard explanations section it says "To be paid, you must file a Proof of Claim even if your claim is listed in the schedules filed by the debtor."

I found the B10 (Official Form 10) (04/13) UNITED STATES BANKRUPTCY COURT Proof of Claim form on the web, and it seems doable.

Has anyone done a tenant bankruptcy before?  There are also dates, times, and locations for "Meeting of Creditors" and "Hearing on Confirmation of Plan" on different dates, did you/should I go to these meetings?

Any way I can get the plan changed to pay me over fewer months?

Any curve balls or issues to look out for?  This tenant has been ok and it is difficult to find tenants this time of year, so I wasn't planning to evict unless absolutely necessary. It sounds like the Bankruptcy filing would put a halt to the Unlawful Detainer/eviction anyway.

Thanks in advance for sharing your experience.

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