VA rent and bankruptcy - Landlord Forum thread

VA rent and bankruptcy by R on August 10, 2012 @16:31

This is for lease in VA. Can tenant put rent in bankruptcy? If he/she does, what's the complication? Of course we should do pay or quit asap. But just want to know the answers to the above questions and any issues that come with bankruptcy. Thank you.

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Re: VA rent and bankruptcy by Anonymous on August 12, 2012 @01:55	[ Reply ]

Not sure specifically about VA, but bk is federal so the same rules mostly apply. And I am NOT an attorney and this is one of those landlording issues where free internet advice is worth the price you pay, so please double check this with an attorney - I haven't been faced with this in quite some time so I'm rusty. Also, be sure your tenant is trying to screw you, or just get out from other debt. Many tenants go BK but continue to pay their rent and for necessities like car payments on their Escalade with the $10,000 gold plated spinner wheels. BK can actually be a good thing for a landlord since now the tenant can afford to pay you instead of for the 60" flat screen TV. A tenant can include you as a bk creditor. But the filing date of eviction is important. IF you have already filed AND received a writ of possession and/or judgement before the tenant files bk, you can proceed with eviction unless tenant files a hardship statement (I'm not clear on this part) which can hold eviction up for 30 days - IF they post bond for the rent with the court. If you have not yet filed for eviction before the bk is filed and you are listed as a creditor you need to file a "proof of claim" as a creditor. This will put you first in line (usually) for payment. IF tenant fails to "reaffirm" What you have to do is go to the bankruptcy court judge and request to lift the "automatic stay." This requires an affidavit and some other documents I can't remember off hand. It's best to use a BK attorney for this so you don't screw it up as the BK courts can tie you up for months if you do stuff wrong. Usually you can get stays lifted within a few weeks and proceed with your eviction. Hope this helped.

Re: VA rent and bankruptcy