| Rent is considered an unsecured debt and can be included in
a bankruptcy filing (Chapter 7, 11 or 13) of your tenant. This can include the full month
in which the debtor files the bankruptcy. If the tenant was on a lease, they could include
the lease in their filing thus terminating it. If your
tenant has included you in their bankruptcy filing as a debtor, you will receive a notice
from the court. However, if you are not named as a creditor, the bankruptcy filing can
still affect you. When a debtor files bankruptcy, they obtain an Automatic Stay. This
prohibits anyone bringing any legal action by a creditor for the duration of the
bankruptcy (until it is discharged). This can stop an eviction process dead in its tracks.
If you think your tenant may have filed bankruptcy, you should contact
the Bankruptcy Court in your area. You will need their full name and social security
number. If you find out they have filed, consult an attorney immediately! There are
serious consequences to violating the Automatic Stay. |