Go to Top

Landlord Bankruptcy Representation

Tenants enjoy immediate protection from U.S. Bankruptcy Courts when they file bankruptcy.  When a tenant files bankruptcy, you – as a landlord – are deemed to be one of your tenant’s creditors.  It is extremely important that you follow the Bankruptcy Court’s rules.  On misstep – even if unintentional – can result in hefty fines.  The good news is that there is a way out of this.  And landlord bankruptcy representation from a competent law firm is your answer.

———————————————————————————————

Has Your Tenant Filed Bankruptcy?  We Would Like to Hear Your Story

Call Us Today at (817) 864-8228

———————————————————————————————

 

What the Automatic Stay Means to Landlords

The automatic stay is arguably the most powerful tool tenants have to fight eviction.  The “stay” portion of the automatic stay refers to stopping everything in its tracks.  The bankruptcy stay means the landlord can no longer demand payments from the tenant.  It also means any steps the landlord was taking to remove the tenant must immediately stop.  Bankruptcy stays are “automatic” because they begin as soon as the tenant files a bankruptcy petition.  In other words, the tenant is not required to ask the bankruptcy court for a stay against all collection attempts.  The stay is imposed as soon as the bankruptcy clerk’s file stamp slaps your tenant’s petition.

What Happens If You Ignore the Bankruptcy Stay

Ignoring your tenant’s bankruptcy stay can result in some very serious consequences.  Any action you take against your tenant during an active bankruptcy stay is void.  Therefore, if you tricked you Justice of the Peace into proceeding with an eviction trial and you won an eviction judgment, that eviction judgment is completely unenforceable.

These types of shenanigans can also prove to be quite costly.  Violating a bankruptcy stay gives your tenant a civil cause of action against you.  The tenant can recover actual damages, punitive damages, attorney fees, and costs.  Let’s say your misrepresentation to that Justice of the Peace later led to your tenant’s forcible removal.  Your tenant’s actual damages might include any damage to their personal property, moving expenses, even reimbursement for hotel stays. Your tenant’s attorney fees in such a case could easily run into the tens of thousands of dollars.

Oh, but there’s more!  The Bankruptcy Court might impose its own fines against you.  A Bankruptcy Judge can hold you in contempt for violating a bankruptcy stay.  In 2011 a Florida bankruptcy Judge slapped Bank of America with a $12,500.00 fine when the bank violated only one stay.

———————————————————————————————

Schedule a Free, No Obligation Consultation to Discuss Landlord Bankruptcy Representation Today

Call Us Today at (817) 864-8228

———————————————————————————————

 

What Can Be Done After a Tenant Files Bankruptcy

There are any number of things a landlord can do to combat a tenant who files bankruptcy.  However, these remedies are not as fast as the eviction process.

The most important first step for landlords is to file a Motion to Lift the Stay.  This is where the bankruptcy court gives the landlord permission to disregard the automatic stay.  Such an Order permits the landlord to begin the eviction process.  While an Order Lifting the Stay permits the landlord to continue the eviction process when the tenant filed bankruptcy during an active eviction case.  After receiving the Bankruptcy Court’s Order lifting the stay, the landlord must file a special notice with the eviction court.  This notice will include a copy of the Order Lifting the Stay.

There are other steps landlords can take to participate in the bankruptcy as a Creditor.  However, the first order of business is always taking back possession of the rental property!

Are Landlords Required to Hire Professional Landlord Bankruptcy Representation

Landlords who list corporations, LLCs, trusts, or other legal fictions as the landlord on their tenant’s lease agreement must hire an attorney for representation before a U.S. Bankruptcy Court.  If you are listed individually on your tenant’s lease agreement, you likely can represent yourself as a Creditor in your tenant’s bankruptcy.  This, however, is almost always a really bad idea.

In terms of complexity and risk, representing yourself as a creditor in a bankruptcy case is about an 8 on a scale of 1 to 10.  This assumes a 10 is a jury trial in a felony-murder trial.  And you’re the defendant, facing the needle!  Hence, you should always hire a competent attorney for landlord bankruptcy representation in one of these cases.

———————————————————————————————

Don’t Let Your Tenant Bleed You Dry With a Bogus Bankruptcy!

Call Us Today at (817) 864-8228

———————————————————————————————

 

Why Should I Not Represent Myself as a Creditor in my Tenant’s Bankruptcy Case?

The short answer to this question is that there are simply too many rules, and those rules are all over the place.  Much of the law describing the steps you must take is included in the United States Code.  However, there is also a Bankruptcy Procedural Code that will apply to your case.  And then there is each Bankruptcy Court’s local rules.  These are the rules that are specific to each federal trial court district in the country.  The local rules often include special filing requirements and procedures for setting hearings just in motions to lift bankruptcy stays.  There are 94 federal districts.
Furthermore, U.S. Courts of Appeals and the U.S. District Courts can rule on other bankruptcy cases.  These rulings can have the effect of fleshing out any grey areas in the United States Code.  If you are unable to locate these cases, you risk having your case upended.  Having competent landlord bankruptcy representation can make a huge difference in the outcome of your case.

You really need to know what you are doing when you file a Motion to Lift the Stay in a tenant’s bankruptcy.  The process is complicated.  And doing it wrong can prove to be very costly.

———————————————————————————————

Let’s Stop the Hemorrhaging.  Call Us Right Now Your Consultation on Landlord Bankruptcy Representation

Call Us Today at (817) 864-8228

———————————————————————————————

 

  • Contact Us Today to See How We Can Help

  • This field is for validation purposes and should be left unchanged.