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When either a landlord or tenant files for bankruptcy, there are two things that can happen to the lease. The landlord or tenant (actually, the trustee) can either: assume the lease, that is, allow the lease to continue in effect, or. reject the lease, which essentially terminates or cancels the lease.
Even if a landlord got a court order of eviction, a tenant could file bankruptcy and the automatic stay would stop the eviction. Thatâs no longer the case. Under the current bankruptcy law, the automatic stay will not stop an eviction if the landlord obtained an order of eviction before you filed for bankruptcy.