A tenant files Chapter 7 Bankruptcy

[Arnie Clark]

I have a single family home that i turned into a rental property, the property is paid off and the title is free and clear. My tenants have been on time for the last 4+ years but just filed chapter 7. The property is in Colorado and is located in one of the suburbs. Speaking with her, she said that i was notified because the $2,100 deposit was listed as an asset. They are current on rent, their lease is up and i am wondering if i should setup this next lease as a month to month lease or set it up for another 1 year lease? Should i be worried about letting them renew it? A little background.. they care for their elderly grandfather who is on SS and VA disability payments and he pays a majority of the rent. The person filing Chapter 7 is the grand-daughter, the person i interact with the most and who's name is on the lease. What are some thoughts on this?