WITHOUT EXCEPTION

     So, you have a couple looking at one of your open units at your condominium building, very personable and they look like a responsible pair of people. You check their backgrounds and see some financial information that causes you to re-think their application. However, you want to rent the unit and you now want to place a clause in the lease that provides in the event the resident files bankruptcy, you as the landlord will be excluded from the effects of the bankruptcy, and that the resident cannot use the bankruptcy as a way to stop or suspend paying the rent.

     Sounds like a great idea but it is not possible. If it were possible, then every creditor would have this type of clause in their contracts.  Their lawyer and the judge would laugh you right out of court.  These clauses are completely unenforceable, however badly you want to cover all your bases. When you own or manage a building full of condominiums or apartments, all landlords take a risk that their residents may file bankruptcy, and there is simply nothing you can do about it.

     If you receive notice that your resident has filed bankruptcy, call your attorney immediately.   Your attorney may or may not be able to place a lien or something similar on their income, other property or anything he or she may be able to find.  Get to know your eviction laws in your city, county and/or state as well. See what you can do to protect you and your property.


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