Tenant Files Bankruptcy
What happens if my tenant files bankruptcy?
If the tenant owed back rent and filed for chapter 7 bankruptcy, that debt is now likely discharged. This means that you will never be able to collect the rent that was owed to you at the time the tenant filed for bankruptcy. The tenant can voluntarily pay you, but you can not attempt to collect that past due rent while the automatic stay is in effect or after the debt is discharged. Such attempts would be either a stay or discharge violation.
If you were in the process of evicting your tenant when they filed for bankruptcy, that eviction action is now likely stayed. This means that you will have to make a “lift stay” motion and have it granted by a Bankruptcy Court Judge in order to continue with the eviction in Landlord-Tenant court. However, under certain specific circumstances you will be allowed to continue with the eviction despite your tenant having filed for bankruptcy.
Long Island Landlord Tenant Attorney
As always, the Law Firm of Vaughn, Weber & Prakope, PLLC is here to assist you. Call (516) 858-2620 to arrange a FREE consultation with a Landlord Tenant attorney!
Joint Bankruptcy Filing
Husband and wife joint bankruptcy filing.
Yes, a husband and wife can file a joint bankruptcy case under chapter 7 or chapter 13. When a joint bankruptcy case is filed, only one bankruptcy petition is filed and only one filing fee is paid to the court. However, both husband and wife must complete the required pre-filing credit counseling course and the required post-filing financial management course. The more difficult question is whether or not spouses should file a joint bankruptcy case. A knowledgeable bankruptcy lawyer can assist you in making that decision.
As always, the Law Firm of Vaughn, Weber & Prakope, PLLC is here to assist you. Contact us at (516) 858-2620 to arrange a consultation with a bankruptcy attorney.