Single Action Evictions and the Automatic Stay

[xyta777]

I understand that when a renter is facing eviction, and they owe money, the automatic stay prevents collection action from the landlord- in the name of ‘preserving the BK estate’.


What about single action evictions (also called ‘possession-only evictions’)? If the landlord isn’t seeking money from the debtor, isn’t the BK estate not really impacted by that eviction then?

tl,dr: does the automatic stay also halt possession only residential evictions?

[despritfreya]

I am not quite sure what you are asking.

Leases (in default or otherwise - unless terminated pre petition) are controlled by 11 USC 365. This section covers both commercial and residential leases.

As it relates to residential leases, if a judgment for possession was issued before the case was filed, the automatic stay of Section 362 is modified unless certain requirements are met. See 11 USC 362(b)(22) and 11 USC 362(l). If there is no judgment for possession the automatic stay applies until it is lifted in the ordinary course.

Regardless, for leases that are not assumed under 365, the monetary obligation would be subject to discharge. Holdover tenants may be subject to paying going forward rents as though they were in the property on a month-to-month basis.

Hope that helps.

Des.