Just received a letter from a tenant's attorney notifying me that the tenant have filed for Chapter 13 Bankruptcy last week pending for approval. My immediate thought is, how will it impact my ability of collecting rent and managing the property? Any insights would be greatly appreciated!

I Googles "Chapter 13 Bankruptcy pay rent" and found several interesting articles. It appears there are state specific regs too. Might be worth dropping a quick email/call to your local land lord / tenant attorney so you get the latest, greatest, most region-specific info.

Is the tenant behind on their rent?

I've rented to several tenants in chapter 13 bankruptcy payments plans without a problem. But as you say, the issue is whether the tenant is on time, and continues to pay rent. And yes, a C-13 will get complicated.

Let's assume the tenant is behind or falls behind and you need to evict. Filing a bankruptcy creates a protective stay for the debtor while the bankruptcy case is being organized. You must hire an attorney to go to the bankruptcy judge first in order to get permission to evict. Only after the bankruptcy judge agrees can you actually file to evict.

So yes, this eviction can be expensive. And be aware, DO NOT TRY TO SHORTCUT THIS PROCESS! A federal BK judge can rip you by the short hairs and asses thousands of dollars of fines against you.

Now let's assume the tenant is paid up and you want to keep renting. Be patient! During the next few weeks, the bankruptcy trustee will review the tenant's income and expenses and draft a budget for the tenant. But also be warned: during a C-13 payment plan, the amount of rent the tenant can pay is based on IRS housing data for the area. If your rent is substantially higher, the bankruptcy trustee can terminate your lease no matter how much time is left.

I don't know anything about the ch 13, but if it got to the point for me where it would be a complicated legal process to get them out, I'd pay them to go.

My stupid tenant went Chapter 13 and listed "rent paid" and their "deposit" as an "asset". By the time I got a "Demand Letter" from the "Bankruptcy Court" asking for the un-used rent plus the deposit to be submitted to the court --the current months rent was used up and the "Deposit" already had "claims" by me for past due "late fee's" and damage done to the unit!

I let the Court know that there was NO DEPOSIT left and the Rent was used up! I refused to submit so much a one cent to the court! My tenant now had "New Rent Due" and was given a 3 day Notice to Pay Or Quit. If rent wasn't going to be paid, my attorney would seek rent because the owed rent was "out of the control" of the Bankruptcy Court.

If they are current and continue to pay you have nothing to do.

If they are behind file a proof of claim so you are on record as being owed money and hire an attorney to get the stay lifted. The proof of claim is the only way you will get any money from the past due amount. You have to get the stay lifted in order to evict.

Linda of TX, Ch 13 Bankruptcy unfortunately you will need to hire a good landlord tenant attorney that knows Chapter 13 rules.

Is the tenant paid up for monthly rent?

Unfortunately, you may not see several months rent. HOWEVER the attorney you hire should know the rules and file the needed paperwork. PLUS he or she will give you the options to progress with this case.

You will have the cost of the attorney. plus potential future rent costs, plus other costs. HOPEFULLY your attorney can get this person out sooner rather than later.

yea get a LL atty and get burned by the B/K trustee for violating the law. Oh that violation is only $5K.

Folks B/K filing is not rent court. These are the big boys. you can't represent yourself in b/k court. You better know your attorney knows what to do and when.

Hire a b/k atty. thats right -- they know the procedure. are they cheap-NO. not getting rent is not cheap either. You can not evict for non pay. when you have your court date after waiting forever- the tenant will just say judge i'm in bankruptcy and everything you have done will be voided.

Pmh TX that is wrong advise. If they don't pay you can't go to dispo court. You must get the stay lifted first from the B/K court which can take up to 2 months-- once the stay is lifted than you can file for the non pay.

YES to stay vigilant. Fact is even if they miss payments-- if they try to pay your going to have to take it because the B/K court will just tell you there working on catching up and will not lift the stay. They also won't lift the stay with only a small shortage owed. The clients submit a plan to the court-- and even if they don't abide by it there given CHANCES TO CATCH UP.

Pmh TX I didn't want to correct you without double checking this BUT -- even when you have post petition amounts not paid-- YOU MUST GO to THE THE B/K court and file for a lift of stay and it must be approved. Before proceeding on with a dispossessary.