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Updated almost 13 years ago on . Most recent reply

User Stats

3
Posts
1
Votes
James Qiu
  • Carlsbad, CA
1
Votes |
3
Posts

Renting to people about to file bankruptcy?

James Qiu
  • Carlsbad, CA
Posted

I'm pretty new to the rental business.

I have someone interested in my condo, but his credit is really bad,
and he is about to file bankruptcy to start fresh. His fiancee who
will be co-leasing and cosigning has great credit. He is willing to
put down a 2-mon deposit plus a huge pet deposit to easy my fear. My question is that if he files for bankruptcy while living in my rental, how it affects me as the landlord. If he stops paying rent while in bankruptcy proceeding, can I evict him?

BTW, this is in California.

Most Popular Reply

User Stats

476
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305
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Monica Breckenridge
  • Rental Property Investor
  • Colorado Springs, CO
305
Votes |
476
Posts
Monica Breckenridge
  • Rental Property Investor
  • Colorado Springs, CO
Replied

I love renting to people who file BK. It gives them a clean slate and I don't have to worry about their creditors garnishing wages. I've had several tenants in the past who had creditors start garnishing wages and they either have to leave or go on a payment plan with me to stay caught up on rent. Yes, you can still evict them if they stop paying rent to you while in BK proceedings. You are not a creditor to them.

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