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  • Tenant Threatening to Declare Bankruptcy

    A tenant with seven units, all in lien sale, is threatening to declare bankruptcy if we continue with the sale. If we sell the stuff, she is also threatening to sue us in court. Of course we won't sell if she declares bankruptcy, but there is no law saying that we can't proceed with a sale because we are threatened with a bankruptcy filing. She is also demanding a response to her email stating that we agree to her terms allowing her to pay X number of dollars per month until the units are paid in full. She has promised those payments before.

    Our intent is to inventory the units, and schedule them for sale per CA law and it she declares bankruptcy we will deal with it when it happens, We will not allow threats to dictate our actions.

    Thoughts?

  • #2
    She can threaten and plead all she wants. Like you said, till you have legal papers in your hands, you proceed with the lien sale as directed by your state statutes. Threats and promises are worth nothing. Like a check, is an I.O.U. till it clears the bank. If she wants the units/items she has to declare that in her bankruptcy paperwork and has to pay. As far as I would be concerned, she can pound sand till anything legal is put in your hands. Threats are empty, just like I bet her promises have been up to this point. Legal stoppage of selling her units/items are what you need in your hands. Make sure you DOCUMENT all of her threats and conversations and proceed as the statutes dictate.

    I hesitated to say this but I have to. This is just another person threatening this because they fell entitled. I am sick and tired of being threatened by ANYONE because they feel and think they should be entitled to do the exact opposite of what they agreed to when they initialed and signed the lease. Legal bankruptcy is there for a purpose. I get it. But to threaten a facility to delay and hold a facility hostage does not fall in that realm unless it is listed in the bankruptcy. If a tenant does that then fine, it is legal and it is what it is, but to threaten the facility without legal documentation, well hell, like I have said before, GO POUND SAND!
    Last edited by pacnwstorage; 16th July 2017, 07:55 PM.
    "Never let the inmates run the asylum!"

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    • #3
      She can threaten, demand, and stomp her feet til the cows come home, she's in a no-win situation, and knows it. In this situation, documentation is your best friend. Her threats are meaningless until she produces legal documentation of the bankruptcy. She's in no position to demand anything from you, the ball is clearly in your court on that one. Keep going ahead with the sale. She'll either pay up at the last minute (and should then be given a 30-day notice) or she'll lose the units in the sale.
      Too many freaks, not enough circuses.

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      • #4
        Why is she threatening to do this? If she considered this a viable option, with little recourse, she would just do it. She has no intention on declaring bankruptcy, she's just playing a game of chicken.

        I don't know about the US, but up here, declaring bankruptcy has many negative effects that outweigh saving your goods from a sale.

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        • #5
          Until you have the papers in your hot little hands, she can say anything she wants, she is going to auction since she hasn't paid. Too bad, so sad.
          Why are I-phone chargers not called 'apple juice'???

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          • #6
            Sell it ASAP. Use delay tactics to delay her filing.
            Chasing Perfection to catch Excellence

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            • #7
              Originally posted by A-team View Post
              A tenant with seven units, all in lien sale, is threatening to declare bankruptcy if we continue with the sale. If we sell the stuff, she is also threatening to sue us in court. Of course we won't sell if she declares bankruptcy, but there is no law saying that we can't proceed with a sale because we are threatened with a bankruptcy filing. She is also demanding a response to her email stating that we agree to her terms allowing her to pay X number of dollars per month until the units are paid in full. She has promised those payments before.

              Our intent is to inventory the units, and schedule them for sale per CA law and it she declares bankruptcy we will deal with it when it happens, We will not allow threats to dictate our actions.

              Thoughts?
              In response to her email, I would put one word.

              "NO."
              Why are I-phone chargers not called 'apple juice'???

              Comment


              • #8
                I have never declared bankruptcy
                BUT I would think..
                If she can't pay the rnet
                How on Earth does she expect to pay the attorney???

                Don't put off until tomorrow, what you can do today.

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                • #9
                  Declaring bankruptcy costs up front. Just like facility rent. You can tell her to either file bankruptcy or STHU.
                  "Never let the inmates run the asylum!"

                  Comment


                  • #10
                    Originally posted by lady5563 View Post
                    I have never declared bankruptcy
                    BUT I would think..
                    If she can't pay the rnet
                    How on Earth does she expect to pay the attorney???
                    Exactly. It's always the ones who can't pay their rent that throw around the words "lawyer, court, and sue" the most. And like Pac says, either file already or shut up and pay up.
                    Too many freaks, not enough circuses.

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                    • #11
                      I can't remember for sure but one of us here tells tenants to get in line when they threaten to sue him.
                      "Never let the inmates run the asylum!"

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                      • #12
                        Make sure the lien process was followed without error. If you do sell, and they do file bankruptcy, the judge may want to review the files. We once sold a unit a few days before the tenant filed bankruptcy.... Make sure you tell the judge that people threaten us with that a lot if they do want to review your procedure.

                        Main things to review:

                        Notices mailed to last known address given to the facility in writing by the tenant.
                        Date notices ran and expiration dates on notices and proper time between notices.
                        Proof of mailings for notices
                        Advertising for sale, after the expiration date on Notice of Lien

                        If partial payments were taken, did the notices run after the paid through date on the accounts.


                        Any questionable issues, re-start the lien process to be safe. Then you have to be ready for them to return the Declaration of Opposition to Lien Sale.


                        If they do file, do not send any notice or make any calls to the tenant.

                        What we have done before, when they have filed, is contact the bankruptcy attorney and have them tell the tenant to empty the unit.

                        If they do not move out, the unit does not start accruing rent until after the judge closes the case. Then if the tenant is still there, they start accruing rent and fees just like before.



                        --
                        Ron

                        http://advancedministorage.com
                        http://zolezzistorage.com
                        http://laws.stocktonstorage.net

                        email ron at advancedministorage.com

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                        • #13
                          Civil lawsuits takes months before they even go to court. You may be looking at a 8-9 month wait depending on the backlog of law suits in your area. You really think she's gonna go through all of that trouble and time to wait? The law is on your side. Document EVERYTHING and date it. Every phone call, time and date; every email, every-everything. This will pass like gas.
                          Chuck G.
                          Content Developer & Social Media Manager
                          Online Storage Auction Services
                          iBid4Storage

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                          • #14
                            Originally posted by ChuckG View Post
                            Civil lawsuits takes months before they even go to court. You may be looking at a 8-9 month wait depending on the backlog of law suits in your area. You really think she's gonna go through all of that trouble and time to wait? The law is on your side. Document EVERYTHING and date it. Every phone call, time and date; every email, every-everything. This will pass like gas.
                            I am not talking about a civil case. The Bankruptcy court might want to review. I did not see where anyone mentioned a civil case.
                            --
                            Ron

                            http://advancedministorage.com
                            http://zolezzistorage.com
                            http://laws.stocktonstorage.net

                            email ron at advancedministorage.com

                            Comment


                            • #15
                              At a self-storage seminar, a lawyer said we cannot proceed with collections of any type even on a rumor of bankruptcy. This would mean a delinquent tenant can lie and say they filed even if they didn't. Not sure exactly how this works. I suppose you could go to the clerk of courts or whoever and obtain proof one way or the other.

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