The new bankruptcy law provides rules that should abide by the landlord regarding
eviction of a bankrupt tenant. However, the steps to be performed shall be based upon the
happening of the bankruptcy, whether it is filed before or after he sued for eviction.
If the bankruptcy was filed after the landlord won possession, the landlord can proceed with
the eviction. Exception to this rule is applied in some states, allowing the tenant to stop an
Image via Wikipediaeviction by immediately filing for bankruptcy.If the bankruptcy was filed before the winning the judgment of possession, the tenant has
a right for an “automatic stay”. Exception to this rule is when the tenant is doing drugs or
damaging the property.
Eviction cases can cost the landlord a lot. Aside from lost income and damaged property,
business continuity may also be risked. A wise act is to hire a Santa Monica Realtor who can help them find
worthy tenants for the rental property.
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