Chapter 13 Bankruptcy
Click here for Top Ten Discussions. CLICK HERE for Q & A Homepage
Receive Free Rental Owner Updates Email:  
MrLandlord Q & A
Chapter 13 Bankruptcy (by Linda [TX]) Dec 5, 2017 7:44 AM
       Chapter 13 Bankruptcy (by S i d [MO]) Dec 5, 2017 7:58 AM
       Chapter 13 Bankruptcy (by Barb [MO]) Dec 5, 2017 8:07 AM
       Chapter 13 Bankruptcy (by Quackers [AR]) Dec 5, 2017 8:35 AM
       Chapter 13 Bankruptcy (by NE [PA]) Dec 5, 2017 8:39 AM
       Chapter 13 Bankruptcy (by Robert J [CA]) Dec 5, 2017 8:55 AM
       Chapter 13 Bankruptcy (by razorback_tim [AR]) Dec 5, 2017 10:07 AM
       Chapter 13 Bankruptcy (by Tom [FL]) Dec 5, 2017 12:09 PM
       Chapter 13 Bankruptcy (by TT [TX]) Dec 5, 2017 12:33 PM
       Chapter 13 Bankruptcy (by myob [GA]) Dec 5, 2017 2:03 PM
       Chapter 13 Bankruptcy (by Opinionated [NC]) Dec 5, 2017 2:44 PM
       Chapter 13 Bankruptcy (by Linda [TX]) Dec 5, 2017 2:47 PM
       Chapter 13 Bankruptcy (by Pmh [TX]) Dec 5, 2017 3:00 PM
       Chapter 13 Bankruptcy (by Vee [OH]) Dec 5, 2017 6:38 PM
       Chapter 13 Bankruptcy (by myob [GA]) Dec 6, 2017 4:27 AM
       Chapter 13 Bankruptcy (by Pmh [TX]) Dec 6, 2017 6:27 AM
       Chapter 13 Bankruptcy (by myob [GA]) Dec 7, 2017 9:51 AM
       Chapter 13 Bankruptcy (by Robin [WI]) Dec 7, 2017 5:23 PM
       Chapter 13 Bankruptcy (by Ray-N-Pa [PA]) Dec 8, 2017 5:00 PM

Chapter 13 Bankruptcy (by Linda [TX]) Posted on: Dec 5, 2017 7:44 AM

Just received a letter from a tenant's attorney notifying me that the tenant have filed for Chapter 13 Bankruptcy last week pending for approval. My immediate thought is, how will it impact my ability of collecting rent and managing the property? Any insights would be greatly appreciated!


Chapter 13 Bankruptcy (by S i d [MO]) Posted on: Dec 5, 2017 7:58 AM

I Googles "Chapter 13 Bankruptcy pay rent" and found several interesting articles. It appears there are state specific regs too. Might be worth dropping a quick email/call to your local land lord / tenant attorney so you get the latest, greatest, most region-specific info.

Bottom line,'re better off having filed and received a judgment PRIOR to the bankruptcy. Sounds like you were not at that point yet. Might hold off on that call until if/when they are actually late.

Chapter 13 Bankruptcy (by Barb [MO]) Posted on: Dec 5, 2017 8:07 AM

Is the tenant behind on their rent?

Generally, if they are behind, you need to have already filed. As long as they are not behind, their attorney should be telling them to keep paying you. They are expected to keep paying their rent even while that process is going on. --131.151.xx.xx

Chapter 13 Bankruptcy (by Quackers [AR]) Posted on: Dec 5, 2017 8:35 AM

I've rented to several tenants in chapter 13 bankruptcy payments plans without a problem. But as you say, the issue is whether the tenant is on time, and continues to pay rent. And yes, a C-13 will get complicated.

Let's assume the tenant is behind or falls behind and you need to evict. Filing a bankruptcy creates a protective stay for the debtor while the bankruptcy case is being organized. You must hire an attorney to go to the bankruptcy judge first in order to get permission to evict. Only after the bankruptcy judge agrees can you actually file to evict.

So yes, this eviction can be expensive. And be aware, DO NOT TRY TO SHORTCUT THIS PROCESS! A federal BK judge can rip you by the short hairs and asses thousands of dollars of fines against you.

Now let's assume the tenant is paid up and you want to keep renting. Be patient! During the next few weeks, the bankruptcy trustee will review the tenant's income and expenses and draft a budget for the tenant. But also be warned: during a C-13 payment plan, the amount of rent the tenant can pay is based on IRS housing data for the area. If your rent is substantially higher, the bankruptcy trustee can terminate your lease no matter how much time is left.

Bottom line: be patient. And probably seek out a GOOD attorney.

Chapter 13 Bankruptcy (by NE [PA]) Posted on: Dec 5, 2017 8:39 AM

I don't know anything about the ch 13, but if it got to the point for me where it would be a complicated legal process to get them out, I'd pay them to go.

If they fell behind.

Chapter 13 Bankruptcy (by Robert J [CA]) Posted on: Dec 5, 2017 8:55 AM

My stupid tenant went Chapter 13 and listed "rent paid" and their "deposit" as an "asset". By the time I got a "Demand Letter" from the "Bankruptcy Court" asking for the un-used rent plus the deposit to be submitted to the court --the current months rent was used up and the "Deposit" already had "claims" by me for past due "late fee's" and damage done to the unit!

I let the Court know that there was NO DEPOSIT left and the Rent was used up! I refused to submit so much a one cent to the court! My tenant now had "New Rent Due" and was given a 3 day Notice to Pay Or Quit. If rent wasn't going to be paid, my attorney would seek rent because the owed rent was "out of the control" of the Bankruptcy Court.

My tenant did make their next rental payment and I then requested my tenant submit a deposit since nothing was left of it... --47.156.xx.xx

Chapter 13 Bankruptcy (by razorback_tim [AR]) Posted on: Dec 5, 2017 10:07 AM

If they are current and continue to pay you have nothing to do.

If they are behind file a proof of claim so you are on record as being owed money and hire an attorney to get the stay lifted. The proof of claim is the only way you will get any money from the past due amount. You have to get the stay lifted in order to evict.

If they are current now but fall behind hire an attorney to get the stay lifted and evict.

Chapter 13 Bankruptcy (by Tom [FL]) Posted on: Dec 5, 2017 12:09 PM

Linda of TX, Ch 13 Bankruptcy unfortunately you will need to hire a good landlord tenant attorney that knows Chapter 13 rules.

Is the tenant paid up for monthly rent?

Unfortunately, you may not see several months rent. HOWEVER the attorney you hire should know the rules and file the needed paperwork. PLUS he or she will give you the options to progress with this case.

You will have the cost of the attorney. plus potential future rent costs, plus other costs. HOPEFULLY your attorney can get this person out sooner rather than later.

The tenant could be filing due to excessive credit card expenses? medical expenses? auto loans? and other loans, debts, etc... Now you are caught in the middle of it with the tenant still in your unit. --99.56.xx.xx

Chapter 13 Bankruptcy (by TT [TX]) Posted on: Dec 5, 2017 12:33 PM

I'm in San Antonio, also got letter from my tenants attorney. That was two weeks ago, rent was paid on the first as usual, she has always paid on time and until something comes up late I consider it her business. I will be vigilant.

Chapter 13 Bankruptcy (by myob [GA]) Posted on: Dec 5, 2017 2:03 PM

yea get a LL atty and get burned by the B/K trustee for violating the law. Oh that violation is only $5K.

Folks B/K filing is not rent court. These are the big boys. you can't represent yourself in b/k court. You better know your attorney knows what to do and when.

Hire a b/k atty. thats right -- they know the procedure. are they cheap-NO. not getting rent is not cheap either. You can not evict for non pay. when you have your court date after waiting forever- the tenant will just say judge i'm in bankruptcy and everything you have done will be voided.

You MUST GET THE COURT TO LIFT THE STAY -- that means you the LL must be cleared by b/k court to continue with the dispo. Most courts provide that the tenant continue paying the rent per your rental contract. When they don't do it you file with the b/k court to allow you to evict. Once they give the go ahead (lift the stay) you can now file for non - payment of rent.

Chapter 13 Bankruptcy (by Opinionated [NC]) Posted on: Dec 5, 2017 2:44 PM

Never was involved in this. But to state another way what others have posted, while bankruptcy of the tenant may cause you to lose any unpaid rent, you are not forced to supply them with housing in the future without payment of rent. --66.226.xx.xx

Chapter 13 Bankruptcy (by Linda [TX]) Posted on: Dec 5, 2017 2:47 PM

Thanks all for the responses! The tenant's rent is current and they have always been on time. I talked to the tenant and a good tenanat-landlord attorney, it looks like I don't need to do anything for now but stay vigilant. --47.187.xx.xx

Chapter 13 Bankruptcy (by Pmh [TX]) Posted on: Dec 5, 2017 3:00 PM

even though they filed they must still pay post petiition leases or abandon. So they need to pay Dec rent or you can post pay or quit and go through eviction process as usual for no pay.

Chapter 13 Bankruptcy (by Vee [OH]) Posted on: Dec 5, 2017 6:38 PM

Here they want accounting of the damage deposit, so very similar to nearing end of 12 months I go inspect and make repairs - the damages get billed to the next rent cycle, the atty send a letter that this is a rent increase and I reply no it is repairs to damages caused in the tenancy, the result is the deposit has shrunk far from what the court was first told and you file a motion for stay of eviction which means when rent is unpaid the eviction may go ahead thru housing court.

Chapter 13 Bankruptcy (by myob [GA]) Posted on: Dec 6, 2017 4:27 AM

Pmh TX that is wrong advise. If they don't pay you can't go to dispo court. You must get the stay lifted first from the B/K court which can take up to 2 months-- once the stay is lifted than you can file for the non pay.

YES to stay vigilant. Fact is even if they miss payments-- if they try to pay your going to have to take it because the B/K court will just tell you there working on catching up and will not lift the stay. They also won't lift the stay with only a small shortage owed. The clients submit a plan to the court-- and even if they don't abide by it there given CHANCES TO CATCH UP.

This is real world B/K not what we all THINK IT SHOULD BE.

Chapter 13 Bankruptcy (by Pmh [TX]) Posted on: Dec 6, 2017 6:27 AM

post petition rents must be paid. that is correct. and if not paid then yes, you can proceed.

Chapter 13 Bankruptcy (by myob [GA]) Posted on: Dec 7, 2017 9:51 AM

Pmh TX I didn't want to correct you without double checking this BUT -- even when you have post petition amounts not paid-- YOU MUST GO to THE THE B/K court and file for a lift of stay and it must be approved. Before proceeding on with a dispossessary.

Chapter 13 Bankruptcy (by Robin [WI]) Posted on: Dec 7, 2017 5:23 PM

When does her lease renew? I think I'd be tempted to non-renew just to avoid losing several months rent working through the bankruptcy process.

Chapter 13 Bankruptcy (by Ray-N-Pa [PA]) Posted on: Dec 8, 2017 5:00 PM

I agree with MYOB.......I lawyered up for about $1,400 when my tenant filed for bankruptcy. But I felt like I had too. As much as I use the PACER program, I don't get involved in any case until relief of stay has been filed.

Subject: RE: Chapter 13 Bankruptcy
Your Name:
Your State:

Chapter 13 Bankruptcy
Would you like to be notified via email when somebody replies to this thread?
If so, you must include your valid email address here. Do not add your address more than once per thread/subject. By entering your email address here, you agree to receive notification from every time anyone replies to "this" thread. You will receive response notifications for up to one week following the original post. Your email address will not be visible to readers.
Email Address: