Category Bankruptcy

Filing for bankruptcy doesn’t guarantee tenants protection from eviction. While the automatic stay may delay the process, landlords can often move forward if there’s a prior judgment, illegal activity, or property damage. This guide explains what California landlords need to know.

When a tenant files for bankruptcy, an automatic stay generally halts eviction proceedings temporarily, unless the eviction was filed before the bankruptcy. Landlords can navigate this process by seeking court permission to lift the stay, especially in cases of nonpayment or lease violations, while ensuring compliance with federal and state laws.

If you’re a landlord suddenly having to go through a tenant bankruptcy, most likely the first words that come to mind is “oh great, now I have to let this deadbeat tenant live free of rent until this gets all sorted out.” While that may be true to a certain extent, you as a landlord need to understand your options dealing with tenant bankruptcy and the process in general so that you can minimize your loses.