Lift Of Stay
Rose's tenants declared bankruptcy and she's not going to get paid. Hear how Dave tells her about dealing with things like the lift of stay.
QUESTION: Rose and her husband are landlords and lease a home. Their tenants have filed Chapter 7 bankruptcy. They found out that the bankruptcy discharge is in September. It will cost them $1,000 for the lift of stay. They aren’t making much money off the house and the tenants are 3 months behind. Should they pay for the lift of stay?
ANSWER: The stay is released automatically when the discharged is done. You’re not going to get done by September 23 anyway. I’d wait until then. I might even offer them $500 to move. It leaves a bad taste in your mouth, but they’ll be gone sooner. Tell them that they have to move by September 23, but I’ll give you some cash to move sooner. It’s emotionally hard to pay someone that just didn’t pay you, but mathematically that works out. Remember to screen your tenants better next time.
The money that they owe you is gone, and the more you chase it, the harder it will be emotionally. Pay them so you can get it rented again immediately. If they won’t move, file an eviction notice for September 24.