Q: Tenant is in default for changing flooring/lighting without permission. Tenant filed bankruptcy. Can I evict?
The lease is rent to own, but tenant can't exercise option to purchase if they are in default. Bankruptcy trustee is trying to purchase my house at the amount stated in lease, then resell at higher rate to pay tenants' debts.
A: The automatic stay which begun when the bankruptcy petition was filed will prevent you from giving the tenant a termination notice. You can proceed with the eviction by asking the federal bankruptcy court to lift the stay. The judge could lift the stay because a lease agreement has no effect on the value of the tenant's estate.
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