Once the tenant filed for bankruptcy, an “automatic stay” prevented all creditors, including landlords, from pursuing the repayment of debt. In 2005, the Bankruptcy Abuse Prevention and Consumer.When a tenant files for bankruptcy, the court will grant what is known as an automatic stay. This means that all creditors will need to stop attempting to collect debts from the tenant until the case.Once a business tenant files bankruptcy, it gains valuable leverage over the terms of engagement with its landlord. First, lease provisions that automatically terminate the lease if the tenant files.The problem with tenant bankruptcy is that it offers its own difficulties for the landlord. Understanding tenants in common bankruptcy will help you to understand exactly what this means for you.Learn the rules when a tenant files for bankruptcy. Landlords Tenant Disputes.Does Filing Chapter 7 Bankruptcy Stop Eviction? Yes, temporarily. If your tenant has filed Chapter If your tenant owes you rent and filed a Chapter 13 bankruptcy, he or she intends to pay you that.