Bankruptcy Remedies for Landlords
This page is for landlords whose tenant has declared bankruptcy. If your tenant declares bankruptcy, federal bankruptcy law automatically “stays” a pending eviction and prohibits you from filing an eviction unless you get the permission of the bankruptcy court. If you are an Arizona commercial landlord, the automatic stay bars you from locking the tenant out of the property unless you get relief from the stay.
So what can you do when your tenant declares bankruptcy? There are basically two approaches; you can wait for the bankruptcy case to resolve or you can be pro-active and seek relief from the bankruptcy stay. Waiting for the case to resolve can take months and cost you money. The alternative requires asking the federal bankruptcy court for relief from the stay, or in the case of a business Chapter 11 reorganization, getting adequate assurance from the trustee and the debtor (tenant) that the terms of the lease will be honored during the reorganization.
We can help you get relief from the bankruptcy automatic stay. Once you get relief, you are free to evict your tenant. If your tenant has filed a Chapter 11 reorganization, we can work for you in the bankruptcy court to protect your interests. If it appears the debtor/tenant can emerge from the Chapter 11, we can work with the trustee and debtor to get you adequate assurance of future performance on the lease. If your business tenant is a candidate for a Chapter 7 liquidation, or is unable to provide you with adequate assurance of future performance you will want relief from the stay to pursue a lock out in most cases.
For a more detailed overview of the bankruptcy process follow this link.
How to Retain Us to Obtain Relief From the Bankruptcy Stay
To retain us, click on the “Submit” button below. The button will take you to our online store. After you complete the check out process, we will send you an email with instructions on what information we need from you and how the matter will proceed.