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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 12404
Experience:  JD, MBA
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Tenant never disclosed they were in the middle of a bankruptcy.

Resolved Question:

Tenant never disclosed they were in the middle of a bankruptcy. started a bankruptcy 8/2008 and signed a lease with me on 2/2009 and never told me about bankruptcy. stopped paying rent and says I can't evict them without a relief from stay from court. what can i do?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  TJ, Esq. replied 6 years ago.
Hi. Is this a Chapter 13 bankruptcy still in effect, or was it a Chapter 7 that was already discharged?
Customer: replied 6 years ago.
chapter 13
Customer: replied 6 years ago.
It is an ongoing chapter 13. I am willing to bet, the client never paid the attorney more money and it was dropped. Bankruptcies in NJ usually only take about 3 months.
Expert:  TJ, Esq. replied 6 years ago.

Hi again.

Although the automatic stay remains in place for the duration of the Chapter 13, it does not affect you. The Bankruptcy Code states:

§ 362. Automatic stay

(a) Except as provided in subsection (b) of this section, a petition filed under section 301, 302, or 303 of this title, or an application filed under section 5(a)(3) of the Securities Investor Protection Act of 1970, operates as a stay, applicable to all entities, of—

(1) the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title;

As you can see, the bankruptcy filing stays action that could have been commenced before the bankruptcy was filed … not actions that arose after the bankruptcy filing. In this case, the tenants did not rent from you until after the bankruptcy was filed. Therefore, you may sue for an eviction without first obtaining a lift of the stay.

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