California had a total of 47,621 bankruptcy cases in 2024, more than any other U.S. state. As a result, local property owners need to understand how a tenant’s bankruptcy filing might affect their eviction efforts.
Sometimes, bankruptcy can put eviction proceedings on hold indefinitely. But when they do their research and find a hard-working eviction lawyer, California landlords might still be able to move forward with unlawful detainers in this situation.
How California Eviction Cases Work Before Bankruptcy Is Involved
Before you look into the effects of bankruptcy on California evictions, it’s good to know how this state’s eviction process normally works. When you plan to evict a tenant, you’ll have to:
California Landlords Must Have a Legal Reason to Evict
California landlords are limited on the reasons they can file for eviction. For most properties, you’ll need to consider if you are subject to AB 1482 (also known as the “Tenant Protection Act of 2019”) before starting your eviction process. This law requires property owners to serve Notices only for:
- At-fault reasons. These evictions stem from a tenant’s behavior. You can legally serve a tenant a Notice when they become a nuisance to your other residents, fail to pay rent on time, or break the terms of their lease (among other issues). These typically require no relocation assistance and give the tenant as little as 3 days to move out.
- No-fault reasons. Not all evictions are caused by a tenant’s actions. AB 1482 also allows landlords to pursue “no-fault evictions” in some situations, like if they want to recover units for themselves (or a residential manager/family member) or renovate a property. These typically require relocation assistance, in addition to 60 days’ notice.
How Landlords Must Follow the Eviction Process
Once you’ve determined the reason for moving forward with an eviction, you can move forward in the process of evicting a tenant. To do that, you’ll need to:
- Serve a Notice. Giving your tenant this official written warning is a mandatory first step in California’s eviction process. At this point in the process, you’ll also need to make sure you’re using the right type of Notice for your situation.
- File a lawsuit. If the notice expires and the tenant remains in possession, the next step is to file a lawsuit with the correct courthouse. From there, the lawsuit must be served on the tenant to begin their time to respond.
- Request a default judgment or trial date. The next step in this process will depend on how your tenant reacts to the forms you served them. If the deadline for those forms passes and you don’t get a formal response, you can ask the judge for a default judgment. But if they file a response, you’ll need to go to trial.
- Appear in court. On your trial date, you’ll need to be available for four hours starting when your case is scheduled. Before that day arrives, taking preparatory steps like pre-writing your testimony and attending another eviction trial can help your odds in court.
- Get a judgment. If your trial goes well, the judge will sign a Judgment in your favor. From there, you can request a Writ of Possession, which can then be given to the Sheriff. Then, the Sheriff will keep the process moving forward by serving your tenant with a Notice to Vacate. If they’re still in your unit five days after that, the sheriff will remove them from the property.
What Is the Automatic Stay in a California Eviction Case?
While the steps described above should help you understand evictions in California, things can easily get more complicated than this broad overview implies. For example, a tenant’s bankruptcy could force you to deal with an injunction known as the “automatic stay.”
According to U.S. Bankruptcy Code Section 362(a), the automatic stay is usually triggered when a tenant files for bankruptcy. When the automatic stay is imposed, landlords are typically required to pause most collection actions – including eviction proceedings.
Why Does a Tenant’s Bankruptcy Filing Trigger an Automatic Stay?
When a debtor files for bankruptcy, the debtor’s assets become the property of the bankruptcy trustee. It’s the job of the bankruptcy trustee to arrange for the fair distribution of those assets to satisfy the various creditors.
A lease can be an asset just like any other contract. For most tenants, the lease is not an asset, but is instead a liability. If the lease forbids subletting, it’s even less likely that the lease will be an asset or will be necessary for a reorganization.
However, the law treats all leases as though they could be an asset. If they aren’t an asset, there are certain procedures that property owners can take to remove the automatic stay.
Will a Tenant’s Bankruptcy Filing Stop a Landlord’s Eviction?
Because of the automatic stay, a tenant declaring bankruptcy could put your unlawful detainer case on hold for a while. However, there are some steps property owners can take to restart the eviction process.
After your tenant declares bankruptcy, filing a Motion for Relief from the Automatic Stay could help you make progress on your eviction case in the near future. If the bankruptcy judge approves this motion, the automatic stay will either be altered or fully lifted. When that happens, you’ll be able to continue working toward an eviction (though your legal efforts will be limited to recovering control of the unit in question).
It’s also important to know how the timing of your tenant’s bankruptcy filing will affect its impact on your case. If they file for bankruptcy after you’ve obtained a Judgment of Possession, U.S. Bankruptcy Code Section 362(b)(22) states that their automatic stay will not apply to you. But even if a tenant files for bankruptcy before you get to this point in the eviction process, the automatic stay should end as soon as their bankruptcy case does.
How California Property Law Group Helps Landlords Navigate Bankruptcy and Eviction
As you can see, the legal relationship between bankruptcy cases and evictions is complicated. To fully understand how the automatic stay works, you’ll need to read the Bankruptcy Code carefully. But for most California landlords, the best option is working with legal professionals who already understand the nuances of this document.
After hiring an eviction lawyer, California property owners won’t have to worry about misinterpreting or violating the Bankruptcy Code. The advantages don’t stop there, either. Working with these professionals can also give you:
- Help understanding other California laws
- Reliable representation in court
- Assistance with filing forms and enforcing judgments
Consult California Property Law Group on Bankruptcy and Eviction Cases
No matter how many times you’ve evicted a tenant, successfully navigating this process isn’t easy. Since a tenant declaring bankruptcy can make eviction proceedings even more complex than they would be otherwise, you’ll definitely want legal assistance in this situation.
When they’re looking for an eviction lawyer, California landlords can count on the pros at California Property Law Group. Our highly qualified attorneys specialize in landlord-tenant matters, making us the perfect choice for unlawful detainer cases like yours. Take the first step – request a free consultation today!
