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Updated over 7 years ago on . Most recent reply
Filed chapter 7 bankruptcy
BP family,
The tenants live in my first and only rental property paid a half of October's rent and told my PM that they are having a family emergency, but they will pay the rest of the rent they owe on 10/27, and there will be no problem going forward. Yesterday, one of the tenants (the wife) sent a short email to PM said her employer closed VA office and she is going to take a new job in Indiana, they will clear out the property in the middle of November, because the moving cost a lot they hope the PM would take the remaining October rent and the 1/2 of November from their deposit. My PM then arranged a on-site meeting with the tenants today. The tenants told PM the wife is taking a better pay job in Indiana and she is already rented a place there and is moving out on November 10th, but the husband needs to stay in local for his business, if the owner (me) agrees, he would stay on the lease for a full term. They will get some money from the employer, but they don't have money to pay the rent they owed now, they may come up with $200 next week (the tenants still owe more than $1000), my pm then mentioned the Notice to Pay or Quit, that's when the wife told my PM they filed bankruptcy (chapter 7) and the rental property is listed as creditor (both husband and wife on the lease and both filed bankruptcy)......my pm has no clue about what to do now. I would be very grateful if any of you could provide me any suggestions or share your thoughts.
V/r
Ling
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![Kyle J.'s profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/107526/1621417363-avatar-sjpm.jpg?twic=v1/output=image/crop=241x241@39x0/cover=128x128&v=2)
Actually if the tenant really did file Chapter 7 it can have quite an important impact on your options. When a tenant files for bankruptcy prior to the landlord starting the eviction process, all collection actions against the tenant should stop. This includes unlawful detainers (evictions) and other efforts to collect money. Filing bankruptcy creates an "automatic stay," which means that creditors (including a landlord) cannot take any action against the debtor (tenant) without court permission. A landlord can proceed with an eviction by asking the federal bankruptcy court to lift the stay though.
I'd consult with a local attorney in this case since it sounds like your PM isn't going to be much help.
Good luck.