• Morris Law Center

Three Types of Bankruptcy a Tenant Might File

There are three types of Bankruptcy that a tenant might file:

  1. If you have a tenant that files for a Chapter 7 Bankruptcy, you will more than likely lose out on any back rent owed, and the tenant can be evicted AFTER the automatic stay is lifted.

  2. If a Chapter 11 Bankruptcy is filed, the tenant is attempting to restructure their debt, and they are working with the court to pay you back any rent that is due.

  3. When a Chapter 13 Bankruptcy is filed, typically by a smaller business, they are also looking to restructure their debt while paying you back. You may not have as high a chance of receiving all of the money that is owed to you, but if they stay in your property, you may have a better chance of eventually receiving the back rents.

If you are interested in setting up an estate plan or would like to talk more about this topic, give us a call at (702) 850-7998, or click here to schedule a complimentary, 15-minute phone consultation with our attorneys.

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