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When a person files bankruptcy, a provision of the bankruptcy law called the automatic stay goes into effect immediately. The automatic stay means that no creditor may take any action to attempt to collect further funds from the debtor or to dispossess the debtor from any property of the estate. Even though the debtor is just renting an apartment, because it is the debtor's residence, it qualifies as property of the estate.
This means that as soon as the landlord or attorney finds out about the bankruptcy, we must stop the eviction immediately and obtain an order from the bankruptcy court granting us relief from the automatic stay to continue the eviction process. Once we have obtained relief from the automatic stay, we must then continue in state court with the eviction.
Under a change in the bankruptcy laws, if the writ of restitution has already been granted prior to the filing of the bankruptcy action, the automatic stay will only affect the collection of the judgment, but it will not slow down or stop the physical eviction and the return of the apartment to the landlord.
The major problem when a tenant files bankruptcy prior to the judgment and writ of restitution is the delay that it will cause. Bankruptcy judges schedule their hearings only twice a month (once a month in Snohomish and Kitsap County). In addition, bankruptcy rules require 24 days prior notice of a hearing to the debtor. For the most part, we can shorten that 24-day time down to about 7 to 10 days.
So, as a practical matter, if the tenant files bankruptcy, you should plan on a delay of between three to six weeks in the eviction.
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