Sorry to hear about the landlord's betrayal of your agreement,Customer
IF you were the OWNER of the land, then filing for BK could delay the sale either until late payments were caught up and a re-affirmation agreement on the debt was signed, or for the 3-9 weeks it would take for the lender to get a motion granted allowing "relief from the automatic stay"; to resume the foreclosure proceedings.
A renter's interest in the land is of mere possession so long as the rent is paid, not ownership. A renter's possessory interest in the land also automatically ends (usually with the word "terminates") the instant the owner sells it to another--whether a voluntary sale or a foreclosure sale.
If there was not some agreement between the buyer and seller requiring the buyer to honor the pre-existing rental agreement, the tenant has no rights. There is the *option* to try to negotiate an acceptable rental agreement with the new owner, which of course depends on what the new owner is willing to do.
The Bankruptcy Code
provides protections to landowners, and in the case of Chapter 13
reorganizations, to renters who want to stay in leases with the actual landowners. Once the lease has terminated by operation of law by reason of sale of the property, there is no lease or rental agreement to be preserved.
The Section 256 you have heard of is the section of the Public Law (not numbered to the US Code) which enacted the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA
), which significantly restricted some previous options under the BK Code.
Underlying real estate law, not BK law, is at play in the situation you describe. I am sorry that you were incompletely informed.
Thank you. BAB.