Bankruptcies are not pleasant for anyone, but they can be specifically difficult for landlords. There are a few things that you need to be prepared for when your tenant declares bankruptcy.
My Tenant Filed for Bankruptcy – Now What?
You might be in a situation where your tenant has declared bankruptcy, but left you out of the action and still continues to pay rent. That’s good news, but it doesn’t always happen that way. Sometimes, if there is a tenant bankruptcy, that tenant isn’t going to be able to continue paying rent. If this happens, you need to know how to deal with that.
Automatic Stay and Bankruptcy Court
When your tenant declares bankruptcy, you’ll receive an automatic stay, and your first step will be to file for a lift stay. However, you cannot go straight to the magistrate for it. In Georgia, bankruptcy court supersedes the courts at the local level, which means you have to hire a lawyer for help with this process. That’s going to be more money out of your pocket, but unfortunately, you will need the lawyer. Property management companies in Atlanta can refer you and assist with this process.
Rental Property Management Atlanta: Lift Stay
Once you file for the lift stay, it will still take two to three months for you to remove the tenant and get your property back. Eventually, you will receive the lift stay from the courts and you can then file it in order to remove the tenant. This process will take four months minimum, but it can go six months to a year if things are not handled correctly by you, or if the tenant is trying to play games that you cannot figure out. You really need to use an Atlanta property manager to help you get through something like this.
If you have any questions about what to do when you’re facing a tenant bankruptcy, please contact us at Solutions Realty Network, your Atlanta property management experts.