Fayetteville, NC asked in Bankruptcy, Civil Litigation and Landlord - Tenant for North Carolina

Q: Renter and him filing bankruptcy

I started the eviction process on this renter. I am evicting because of breach of contract damage to home and trash.. he sent me papers today that he was in bankruptcy and I couldn’t sue for eviction any longer.. we are to go to court on Monday at the county court house but now I am thinking I have to go thru the bankruptcy court.. am I assuming they will dismiss the case Monday because of his bankruptcy

2 Lawyer Answers
W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
Answered
  • Bankruptcy Lawyer
  • Boyertown, PA

A: When a bankruptcy case is filed, it triggers an "automatic stay" against any action to collect a debt against the debtor or his property.

For those who know, or should know, or constructively know, of the bankruptcy filing, and persist with collection efforts, even for possession of something the debtor holds, sanctions may be imposed by the bankruptcy court for violation of the automatic stay.

You should confirm the filing of the bankruptcy with the District in which it was filed, and the Bankruptcy case number. And of course, you should speak to a bankruptcy lawyer licensed to practice in your district about your rights as a landlord. Special rules apply to residential leaseholds of real property.

Lynn Ellen Coleman and Timothy Denison agree with this answer

Lynn Ellen Coleman
Lynn Ellen Coleman
Answered
  • Bankruptcy Lawyer
  • KERNERSVILLE, NC
  • Licensed in North Carolina

A: Did he file bankruptcy before the breach of the lease or after? I agree with the other attorney that you should consult your own attorney privately for advice before your court datethe specifics need to be reviewed and we can't do that for you here (don't just ask a general question here and rely on it). However, if he has been in bankruptcy for a while before the breach of the lease took place, this may not be covered by the automatic stay. If he filed bankruptcy before the breach of the lease took place, there are extra steps you will need to take to move forward with the eviction.

Timothy Denison agrees with this answer

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