If a tenant files for federal bankruptcy protection, whether for their business or personal, the Landlord, Investor or Property Manager will need to take specific steps to protect the property and proceed with an eviction. The Eviction Law Firm represents Landlords, Investors & Property Managers trying to eviction a tenant in bankruptcy.
When a tenant files for bankruptcy, there are laws, called the automatic stay [11 U.S. Code Sec. 362] that prohibit the landlord from proceeding with an eviction. Not only must the Landlord, Investor & Property Manager comply with the automatic stay, but so much the Judge, Sheriff and other creditors of the debtor tenant. If the automatic stay is not complied with, then severe penalties can be imposed by the bankruptcy judge against the Landlord, Investor & Property Manager.
There is a way around this preclusion from proceeding in the eviction against the debtor tenant in bankruptcy. We at the Eviction Law Firm have been representing Landlords, Investors & Property Managers in bankruptcy cases to present to the bankruptcy court why the eviction case must continue. There are bankruptcy laws that do protect the Landlord and when properly used, can achieve the result of continuing the eviction to a conclusion with the Sheriff removal if necessary. However, moving forward quickly is essential.