When Bankruptcy Stops Residential Evictions

An attorney called me to ask whether he continue a residential eviction after the tenant filed Chapter 13 bankruptcy. The landlord’s attorney had already obtained a writ of eviction for non-payment of rent. 

Under the 2005 bankruptcy law a bankruptcy petition does not automatically stay an eviction after their is already a possession order. The stay does stop collection of past rent due. Notwithstanding the stay exception, a debtor/tenant may file a motion to extend the automatic stay for thirty days by certifying under penalty of perjury that the tenant has a right to cure the rent default and that the debtor/tenant has deposited the rent with the court including rent that will become due within the 30 days.

Under the new rules delinquent tenants cannot use bankruptcy to stop evictions at the last minute without tendering all the rent.

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