Reply to Re: Need advice on pre-bankruptcy prospect for vacancy
Re: Need advice on pre-bankruptcy prospect for vacancy
by OK-LL on Thursday, March 22, 2012 @22:31
You need to recognize that the SD is the tenant's money being held by you. If the tenant files a bankrutpcy, the bankruptcy trustee can and sometimes does seize the SD as a part of the debtor's estate and you are left without your security blanket. The trick to a bankruptcy is not to let the tenant establish a debt with you. That means the rent is paid on time and in full, and you begin the eviction process with a p/q on the day after the rent is due. Teh tenant can only include existing debts in the bankrutpcy case. No debts incurred after the date of filing the bankrputcy petition will be included in the bankrutpcy, so if the tenant remains in your unit post-filing and does not pay rent, he is accruing new debt which is not a part of the bankrutpcy case and you should be able to evict based on this new debt. At the very worst, if you find yourself named as a creditor in the bankrtupcy case, all you have to do is request a lift of the stay so you can evict.