When a Resident Decides to File Bankruptcy

We are constantly asked for clauses to be placed in the lease that will protect the property owner in the event the resident decides to file bankruptcy. It simply can’t be done. If creditors could put clauses in contracts that stated that a bankruptcy of a debtor would not affect them or would exempt them, EVERYONE would do it. It is not called “bankruptcy protection” by accident. It protects the person who files bankruptcy. If an applicant tells you of an intent to file bankruptcy, you need to be scared, very scared. NOTHING can safely protect the owner.

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