I have a question regarding tenant's bankruptcy. I received a noticed from the US Bankruptcy Court that one of my tenants file for bankruptcy on the 1s of this month. Prior to this, he had told me that he was going to be late on rent due to something else, well, he finally paid the full rent and late fee on July 12th, but I am not sure what should I do next. I read the contract and we have the following section on bankruptcy.
31. BANKRUPTCY. Subject to the requirements of the Bankruptcy Code, in the event the Tenant is adjudicated as bankrupt, (or makes an assignment for the benefit of creditors), this Lease, at the option of the Landlord, shall terminate upon 30 days written notice and the Dwelling Unit shall be surrendered to the Landlord, who reserves the right to repossess the Dwelling Unit subject to the applicable provisions of law.
Should I follow the steps on the contract? Should I continue renting to him since he is paying? Or should I talk to him and ask for additional security deposit since we received the bankruptcy letter? Not sure which option to take. To be honest, when we received the bankruptcy letter I thought about sending him a letter to let him know that he had to surrender the property, because I thought he was not going to pay, so when he paid the full month and late fee, this kind of threw me off, not sure how to proceed.
Much appreciate the help from this forum
