June 2016

If your tenant files bankruptcy AFTER you have a judgment for possession, the law entitles you to go forward with the eviction.

If your tenant files bankruptcy BEFORE you have a judgment for possession, the law allows you to ask the court to lift the stay.  The “stay” is the protection from creditors provided by bankruptcy law.  You can make a request of the court to “lift the stay” and the court will grant a hearing within 30 days of your request.  At the hearing, you will ask the court to allow you to proceed with the eviction process.  In most cases, the judge will lift the stay because a lease agreement has no effect on the value of the tenant’s estate.  So, if your tenant owes rent and files bankruptcy, you can still proceed and do not need to wait for the bankruptcy case to get resolved.  It can be a very long wait.