Legal Question in Bankruptcy in California

Since you are on notice that your tenants have filed for Chapter 7 bankruptcy protection there is an automatic stay in place as to you filing a legal action to evict them. What needs to be done is to file a petition with the bankruptcy court to end the automatic stay as to you (relief from such) so that you can serve a three day notice to pay and/or quit the lease and if the tenants do not vacate then you need to get permission from the bankruptcy court to file suit against them to evict them.

For that, I suggest that you will need to consult with a landlord tenant attorney with bankruptcy experience so that you can get a court order relieving you from the automatic stay provisions of your tenant's bankruptcy so that you either get paid or you get the tenants evicted.

The tenants are protected by the bankruptcy automatic stay regardless of whether or not you received a notice of the court. Your own researched has confirmed the existence of the bankruptcy and you need to proceed very carefully.

You should consult an attorney who has experience with both evictions and bankruptcy issues. You need to file a motion for relief from the automatic stay to get permission from the bankruptcy judge before proceeding the the necessary steps to evict them. Once you receive permission from the bankruptcy court, you proceed as normal: notice to pay rent or quit, eviction lawsuit, etc.

Be advised, however, the most bankruptcy courts will hold that you cannot collect even the post-bankruptcy rent if they are rejected the lease in the bankruptcy. Discuss this issue with your legal counsel to confirm.

I'm going to give a slightly different answer than my colleagues.

First of all, we are all assuming this is a consumer lease and not commercial. The law is different. I'm also assuming a Chapter 7 was filed and that they don't want to assume the lease.

Quick answers:

1. You can't get any of the rent owed before they filed for bk.

2. You need to obtain relief from stay to pursue the unlawful detainer action.

3. You may want to sue, under quantum meruit, for the rent owed to you after they filed for bk but before they moved out. This is usually not worth it because attorneys cost lots of money.

4. All that stuff about I didn't get notice of the bk, etc, don't work. You've been told, you have actual knowledge!

My landlord is a tennants attorney and I can get you her number if you contact me.