Renters' Rights for a House in Bankruptcy
As a tenant if you learn that your landlord filed for bankruptcy, you undoubtedly have questions and concerns. Under both the Uniform Residential Landlord and Tenant Act and the U.S. Bankruptcy Code, renters' rights are established for a leased house in bankruptcy.
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Function
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The function of renters' rights for a house in bankruptcy is to maintain the status quo for the tenant during the lease term despite the bankruptcy. The residential lease remains in force until the expiration date set in the lease.
Benefits
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The underlying benefit of these renters' rights is that a tenant remains in possession of his or her residence without interference and without having to take any action at all.
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Sale
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If the rental property sells during the course of a bankruptcy case, the new owner is obliged to honor the outstanding lease agreement.
Misconceptions
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A fairly common misconception is that a tenant must surrender possession of leased property when a bankruptcy case is initiated.
Warning
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If you feel your rights as a tenant are being violated, consider hiring an attorney. If you cannot afford an attorney, a legal aid organization or a law school clinic in your area can offer legal assistance in some cases free of charge.
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References
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- Photo Credit Image by Flickr.com, courtesy of Chris Griffith
