What a landlord does when a tenant files for bankruptcy

What is the automatic stay?

The United States Bankruptcy Code says a bankruptcy filing "operates as a stay" that applies to everyone, and it covers any act to collect, assess or recover a claim against the debtor that arose before the case began. For a landlord, that means calls, demand letters, a pay or quit notice for old rent and a lawsuit for old rent can all be blocked. The text is in 11 U.S.C. 362.

Breaking the stay can lead to penalties from the bankruptcy court. That is why the safest first step is to stop all collection on the old balance the moment you learn of the filing.

How will I find out?

Usually a notice arrives from the bankruptcy court, or the tenant or their lawyer tells you. If you only hear it from the tenant, ask for the case number and confirm it with the court. Write down the date you learned of it. Then freeze any pending notice or lawsuit for old rent while you check.

What about rent that comes due after the filing?

Rent for the period after the filing is a new obligation. The tenant still has to pay it under the lease, and you generally may still ask for it. Keep your ledger clean so the old and new rent are separate lines.

Example a made-up tenant owes $1,800 for two earlier months when they file on the 12th. That $1,800 is frozen. The $900 rent that is due on the 1st of next month is a new charge. If they pay it, post it as usual. If they do not, take your next step only after you have checked what the court allows.

Tenants often stay on in the unit and keep paying, and the bankruptcy ends with the old balance cleared or put on a plan. Others fall behind again after the filing.

Can I still evict?

It depends on timing. Section 362 includes an exception for a residential landlord who had already obtained a judgment for possession before the filing, and it is subject to a provision that lets a tenant keep the stay by certifying they can cure the default and depositing rent with the court within a short window. Without that earlier judgment, you generally need the bankruptcy court's permission, often called relief from the stay. Get a bankruptcy attorney for that step.

This is the common pattern, not legal advice. Rules differ by state and city, so check your state's law or ask a local landlord attorney before you act. Federal bankruptcy law controls, but local court procedure and your state's eviction rules still apply.

Keeping the ledger ready

The court and your attorney will want one number: what was owed on the filing date. DoorKeeping's tenant ledger shows every charge and payment by date, so you can ask Claude or ChatGPT for the balance as of a given day, and for what has been paid since. Nothing is sent to a tenant without your approval, which helps you avoid a contact that the stay forbids.

Sources

1. 11 U.S.C. 362, Automatic stay (Cornell Legal Information Institute), read Oct 30, 2026
2. DoorKeeping: Connect Claude or ChatGPT (steps and tools list), read Oct 30, 2026

Questions

Can I charge a late fee on rent after the filing?

Only on new rent, and only under your lease and state law. A late fee tied to the old balance is part of the frozen claim.

Does bankruptcy end the lease?

Not by itself. The lease may continue, depending on the type of bankruptcy and what the tenant decides to do with it.

Can I keep the security deposit?

The deposit is held for the tenant and has its own rules. Ask your attorney before applying it to the old balance after a filing.

What if I did not know about the filing?

Act as soon as you learn. Keep a written record of when you found out and stop any collection on the old balance.