What are a landlord’s rights if they are in Chapter 13 and a tenant breaks their lease?

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What are a landlord’s rights if they are in Chapter 13 and a tenant breaks their lease?

My property went into foreclosure and my tenant found out. I filed Chapter 13 to save the house. I showed them the papers but they said the were going to leave anyway because their utilities are too high. They will be leaving at the end of the month. The contract that they signed give them the option to terminate early. However, the tenant needs to give me 30 days notice on/before the rent is due, paying all monies due through date of termination; they must pay an amount equal to 1 months rent, plus a $50 admin fee. Am I in my right to sue the tenant in a court of law?

Asked on August 20, 2011 Georgia

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

In a bankrupty proceeding there is an automatic stay as to all legal proceedings against the debtor who has filed for bankruptcy protection under 11 U.S.C. section 362. Meaning, all lawsuits against the person who has filed for bankruptcy protection are put on hold.

However, the automatic stay does not stop the person who has filed for bankruptcy protection from pursuing any and all legal options against people if warranted.

You have every right to file a legal action against your tenants who are trying to take advantage of you concerning your Chapter 13 filing. You should advise your bankruptcy attorney and the trustee of your intent to file an action against your tenants in any event.

Good luck.


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