If a tenant files bankruptcy and includes rent in the bankruptcy action, an “automatic stay” goes into effect. This means that no legal action can be taken against the tenant without the permission of the bankruptcy court. Even if an eviction action has already been started, the property cannot be recovered without the approval of the bankruptcy court and this can be an extended process.
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January 27, 2014
If a tenant files for bankruptcy…
by Michael Waggoner
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