We are one store small business building landlord. Tenant has filed for Ch13 about 8 months ago & could not submitt new plan for approval to court. Now, trustee's office filed proceeding to "Order Dismissing Case" to judge.
We have no attorney.
She has paid rent up to date and tells us, she will pay her rent as long as possible and will not give us any hard time.
Now, if judge signs dismiss from Ch 13, understand, she will be automatically put to Ch 7.
Can she still continue to operate her business with her rent be paid up to date or is she force to close down her business?
Will it be better for us to hire an attorney to taken an action on outcome?
What can attorney do for us at this stage?
(We had an attorney who did file for objection to her 1st plan and dismissed them to wait &see)
Estate Planning Attorney
Since bankruptcy is administered through the federal courts, even though I practice in Michigan there are similarities as to bankruptcy practice. Whether California or Michigan, there is a significant difference between dismissal of a Chapter 13 and a conversion to Chapter 7 but many times a 13 is followed by a 7 because the underlying business owner owes debts that will cause her business to fail. As her landlord, you are entitled to your rent payment or you can evict her for non-payment. That may take a limited period of time to accomplish but if you continue to receive your rent on a timely basis, it seldom will not be a problem because you are exchanging possession for the payment so it is not a preferential payment (recoverable). However, if she defaults in paying her rent or falls behind, you may have a problem. Unless the case is converted to a chapter 7 or she falls behind in her rent, you probably will not need to retain an attorney. You may also want to consult with an attorney who is experienced in bankruptcy matters and real estate matters. Certainly, if you decide for any reason, including non-payment of rent, that you want to evict her, you will be wise to hire an attorney. Advise the attorney of the bankruptcy background to avoid any problems, and proceed to protect your own interests.
The information provided does not constitute legal advice and no attorney client relationship exists based upon this response. Unless specifically noted to the contrary, information refers to Michigan law. Prior to taking action, you should consult directly with an attorney for specific advice based on a full factual disclosure about your own legal situation. This information is provided for your personal use and may be reproduced for non-commercial distribution. All copies must include the following copyright notice: Copyright © 2011 THE HUBBARD LAW FIRM, P.C. Donald B. Lawrence, Jr. (P16463)*; THE HUBBARD LAW FIRM, P.C.*
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Personal Injury Lawyer
I agree with Mr. Lawrence.
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