by 
The Curious Bag
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If you are a tenant and learn your landlord is filing for bankruptcy, your immediate reaction might be alarm. You need to keep in mind that you have certain rights that protect your interests in your home even when your landlord is in bankruptcy.
Function
The function of a bankruptcy is to protect your landlord from her creditors. This may include a mortgage lender that has a lien on the apartment or other resident you lease.
Misconceptions
A common misconception when a landlord files bankruptcy is that a tenant faces imminent eviction.
Considerations
A tenant's rights to the premises are protected by the Residential Landlord and Tenant Act as well as the U.S. Bankruptcy Code. Barring another agreement with you as a tenant, you are able to remain in your home for the remainder of the lease term.
Benefits
The benefits of these protections are that your rights to possession of your home are not disturbed even if your landlord experiences serious financial problems.
Warning
Make sure you stay abreast of your landlord's bankruptcy case to make sure no inappropriate action is taken in regard to your rights under the lease and the law. The clerk of the bankruptcy court can provide you with basic information about the status of a case.
Source:
"The Glannon Guide to Bankruptcy: Guide to Bankruptcy;" Nathalie Martin; 2006
Cornell Law School: Bankruptcy Overview
More Information:
American Bar Association: Bankruptcy and Insolvency Litigation Committee
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