Does the automatic stay still apply to a residential lease under the new bankruptcy law?


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bankruptcy automatic stay consumer bankruptcy

Does the automatic stay still apply to a residential lease under the new bankruptcy law?

Under BAPCPA, if a residential landlord already has a judgment for possession by the time the tenant files for bankruptcy, the stay does not prevent the landlord from continuing to evict the tenant 30 days after the petition was filed unless the debtor has a right to cure, and actually has cured, any deficiency in rent and has deposited with the clerk of the Bankruptcy Court the rent coming due during that 30 days.
The stay no longer prevents a landlord from evicting a tenant based on endangerment of the property or illegal use of controlled substances, but the landlord must file a certification with the court, and the debtor has 15 days in which to rebut the allegations or to remedy the situation.
(Reviewed 11.14.08)

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