The Landlord & Tenant Conflict In Chapter 7 Bankruptcy Cases

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Past due rent posses a pesky problem for debtors filing Chapter 7 bankruptcy, because landlord and tenant rights remain largely unaffected by the automatic stay. The protection afforded by the stay is temporary at best, and if rent remains owing, landlords may file a motion to lift stay and evict. Courts readily grant landlord motions based on nonpayment of rent. Be aware however, that discrimination based solely upon filing is not allowed, so that a landlord who refuses to re-let because of Chapter 7 may be liable for damages under alternate Code provisions. In practice however, proving sole causation is extremely difficult.