Landlord recovery of property

If you are a landlord who has a tenant who has declared bankruptcy, the bankruptcy automatic stay prohibits you from immediately evicting him, even if he has not paid rent.

However, if the tenant has not paid rent, you are entitled to bring a motion before the bankruptcy court to request relief from stay.

A motion for relief from stay will be granted by the bankruptcy judge when it is shown that the debtor does not have equity in secured property or where it is not adequately protecting the property of another. If a tenant is not paying rent, it is almost always the case that the tenant has no equity.

A hearing on the motion can be had as soon as three weeks after the motion is filed. It is important to have sufficient records to demonstrate your ownership rights to the property and the fact that the tenant has not made payments. If you are a landlord with a tenant who is not making rental payments or has declared bankruptcy, please contact me to get information on your rights.