Automatic Stays and Residential Leases
Under the old bankruptcy law, the bankruptcy stay applied to residential leases; under the new bankruptcy law, the issue is slight more complex. In the event that a landlord has already attained a judgment for possession by the time the tenant has filed for bankruptcy, the bankruptcy stay does not prevent the landlord from proceeding with the eviction 30 days after the petition was filed, unless the debtor has 1) a right to cure, 2) has actually cured any failure to pay rent, and 3) has deposited the rent for the next month with the clerk for the Bankruptcy Court.
The bankruptcy stay, under the new bankruptcy law, does not prevent the landlord from proceeding with an eviction based upon the engenderment of the property or the illegal use of controlled substances. However, a certification must be filed with the court by the landlord and the debtor/tenant is given 15 days to prove the charges false or to rectify the situation.
If you think you might have a Consumer Bankruptcy case,
Contact our Consumer Bankruptcy Lawyers Immediately for Help.
Consumer Bankruptcy Resource Center
Answers and Information
Answers to frequently asked questions about Consumer Bankruptcy.
Types
An overview of Chapter 7 and Chapter 13 Bankruptcy.
Home and Property
An explanation of what happens to home and property during Bankruptcy.
Understanding the New Bankruptcy Law
A guide to understanding the New Bankruptcy Law.