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Updated over 5 years ago,

User Stats

10
Posts
2
Votes
Page Weil
  • Rental Property Investor
2
Votes |
10
Posts

Tenant declaring bankruptcy, how to protect myself?

Page Weil
  • Rental Property Investor
Posted

Single family home, USA

Tenant has not missed a payment (though they have only been on the lease for 6 months).  I just got a letter in the mail from a law office saying that my tenant is declaring bankruptcy. I only know a little about bankruptcy law so I want to understand where I am protected/exposed:

  • Is their lease null and void now?
  • Is the tenant required to continue paying rent?
  • Should I start preparing for eviction?

These renters have not missed a payment, so I would rather not evict.  What I'm worried about (and this is where my legal knowledge breaks down) is that by having tenants that declared bankruptcy:

  • they are no longer required to pay under their lease,
  • I have no legal recourse if they decide to stop paying, or
  • my landlord rights are reduced and it will become much harder to evict or force payment if they stay

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