Landlord Question and Answer Forum

New Mexico tenant filed Chapter 7 bankruptcy within hours of knowing he was going to be called to court for 2 months back rent. The bankruptcy was truly filed less than 24 hours prior to us requesting a court date and hiring a process server. Can we continue with the eviction process? All information and suggestions welcome and appreciated.

If your tenant has filed for bankruptcy or is being evicted, there is a law that may bypass or delay the eviction called the automatic stay -- but the new bankruptcy law makes it easier for landlords to proceed with evictions. If you have already had a judgment of possession against the tenant than the automatic stay won't affect these eviction proceedings; you can continue just as if the tenant hadn't filed for bankruptcy. And if you allege that the tenant has been endangering the property or using controlled substances there, the automatic stay won't do the tenant much good, either. In other cases, the automatic stay might buy the tenant a few days or weeks, but you can ask the court to lift the stay and allow the eviction -- and the court will probably agree to do so.

Posted by Molly H, on Monday, February 20, 2012

My tenants filed for Chap 7. They are on a month to month lease agreement that either of us can terminate at any time. Providing they don't know I received the Notice of Chap 7 Bankruptcy Case letter, can I just terminate their lease now? I am giving them 60 days to vacate the premises. They have a history of being late with rent payments and I am ready to fix the apartment up and lease to another, more responsible tenant. I don't have money for a lawyer, I need some good advice.

Posted by Becky M, PA on Friday, October 24, 2014