When you file for bankruptcy, your landlord must cease any eviction proceedings or other attempts to collect back rent from you. However, Colorado law doesn't address whether your landlord can refuse to renew your lease in the middle of a bankruptcy proceeding. In most cases, the situation won't come up, as most landlords don't re-check credit when they renew leases.. However, landlords do have the right to refuse to renew your lease regardless of your bankruptcy status.
No Credit Check
If your Colorado landlord does not perform a credit check before renewing the lease, the landlord will most probably renew the lease even if you have filed for bankruptcy, as he is unlikely to even know that you have filed. However, if the landlord checks your credit again, he has the right to refuse to renew the lease due to your bankruptcy just like he would be able to deny a new tenant an apartment if the tenant has poor credit.
Eviction
If your landlord threatened to evict you due to non-payment of rent before filing for bankruptcy, the landlord must go through the court system. When you file for bankruptcy, the bankruptcy court grants an automatic stay, meaning your creditors -- including your landlord -- must refrain from collection activity. Your landlord can file a motion for relief with the court to get permission to continue with the eviction lawsuit while the bankruptcy is in process. If your landlord wishes to refuse to renew your lease because you are behind on the rent, however, he can do so without going through the court system as he is not attempting to collect the debt.
Consideration
While most Colorado landlords will renew your lease despite bankruptcy, it may be difficult for you to get a new apartment because of the negative mark on your credit history. Thus, even if you want to move to an apartment that you can better afford, it may be better to renew your current lease for another year so that you can work on improving your credit..
Up-to-Date Payments
Colorado bankruptcy law states that debtors must gain court approval before assuming new leases while in bankruptcy. One of the conditions of getting a new lease is that the debtor must not be in default on any obligation. Thus, you should make sure to catch up with your rent payments before renewing a lease. In addition, if you are up to date with your rent payments, your landlord will have considerable more difficulty evicting you even if he knows you have a bankruptcy, as there will be no financial basis for the eviction.
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