What to do if I have tenants who filed for Chapter 13?

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What to do if I have tenants who filed for Chapter 13?

I put in a claim for pre-petition past due rent which is being paid through the trustee. They have now incurred post petition debt from missed rent. I got a lift of stay and won a judgement against them in district court to evict them and for past due rent. Now that I have this judgement, how do I go about collecting on the judgement money for the past due rent? I feel I was not adequately protected in the Chapter 13 plan.

Asked on January 25, 2013 under Bankruptcy Law, Michigan

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Unfortunately you do not get two bites of the apple as they say.  You have had your day in cvourt as to the amount of the judgement and unless you have the ability to appeal - which I doubt at this stage - you are suck with the amount.  You can execute on the judgement in any manner your state allows: garnishment, levy, etc.  Good luck.

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Now that you have a post petition judgment against your tenants I would submit it to the bankruptcy trustee with a demand for its payment through the bankruptcy court. If the trustee will not pay it through the bankruptcy court then your option is to begin a levy procedure on their bank accounts and/or a wage garnishment since the debt is post petition bankruptcy filing.


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