{"id":9150,"date":"2020-07-13T19:57:57","date_gmt":"2020-07-13T19:57:57","guid":{"rendered":"https:\/\/www.droitlocatif.ca\/?p=9150"},"modified":"2020-07-14T00:27:52","modified_gmt":"2020-07-14T00:27:52","slug":"tenant-bankruptcy","status":"publish","type":"post","link":"https:\/\/www.droitlocatif.ca\/en\/2020\/07\/13\/tenant-bankruptcy\/","title":{"rendered":"Tenant bankruptcy"},"content":{"rendered":"<style type=\"text\/css\" data-type=\"vc_cmsms_shortcodes-custom-css\"><\/style><p>Following the introduction of a demand for non-payment of rent to the R\u00e9gie du logement, you receive, before the audition and from a Bankruptcy Trustee, a notice for the suspension of all procedures in conformity with the <em>Bankruptcy and Insolvency Act<\/em><sup>(1)<\/sup> (hereafter : \u201cAct\u201d), because your tenant just went bankrupt.<br \/>\nTherefore, you will not be able to obtain a decision ordering your tenant to pay the rent due before the time of the bankruptcy.<br \/>\nHowever, will you be able to obtain the resiliation of his lease?<br \/>\nIn a decision<sup>(2)<\/sup>, the administrative judge Anne Morin resiliated a lease despite the tenant\u2019s bankruptcy.<br \/>\nThe landlord was asking for the resiliation of the lease because an amount of 3 925 $ was due at the date of the audition on January 6<sup>th<\/sup> 2011 and also because the tenant was frequently paying his rent late which caused the landlord a serious prejudice.<br \/>\nFollowing the bankruptcy of the tenant on November 5<sup>th<\/sup> 2010, a notice of suspension of all procedures had been sent. Consequently, the landlord\u2019s demand to recover the rent was suspended.<br \/>\nThe Court explained that following article 84.2 of the Act and its interpretation by the R\u00e9gie du logement, a renting contract cannot be resiliated because the bankrupt had not been paying is rent before the time of the bankruptcy.<\/p>\n<p><strong>\u201c<\/strong><strong>84.2<\/strong> (1) No person may terminate or amend \u2014 or claim an accelerated payment or forfeiture of the term under \u2014 any agreement, including a security agreement, with a bankrupt individual by reason only of the individual\u2019s bankruptcy or insolvency.<\/p>\n<p><strong><br \/>\nLease<\/strong><br \/>\n(2) If the agreement referred to in subsection (1) is a lease, the lessor may not terminate or amend, or claim an accelerated payment or forfeiture of the term under, the lease by reason only of the bankruptcy or insolvency or of the fact that the bankrupt has not paid rent in respect of any period before the time of the bankruptcy.\u201d<br \/>\nAfter hearing the proof, the Court concluded that: \u201c[TRANSLATION] the default by the tenant has been steady and constant since many months. The frequency of his late payments is encountering the criteria of article 1971 C.C.Q. [\u2026] This second claim is not based on article 121 of the <em>Bankruptcy and Insolvency Act<\/em>, but on the violation of an obligation stipulated by the renting contract which is, the obligation to pay the rent on the 1<sup>st<\/sup> day of the month. Consequently, the prohibition of article 69.3 (1) does not apply to this case.\u201d<br \/>\nOther decisions have also ordered the resiliation of the lease of tenants who were not paying the rent after the time of the bankruptcy and who were more than three weeks late.<br \/>\nWhen the tenant does not pay his rent on the first day of each month, especially after the time of the bankruptcy, and when it causes the landlord a serious prejudice, it would also be possible, under certain circumstances, to obtain the resiliation of the lease.<\/p>\n<p><em>(1) L.R.C. 1985, c. B-3 (\u00e0 jour au 22 f\u00e9vrier 2010)<\/em><br \/>\n<em> (2) B\u00e9dard et al. c. Boucher et Pierre Roy et Associ\u00e9s Inc. Syndic, 2011 QCRDL 76, 6 janvier 2011<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Following the introduction of a demand for non-payment of rent to the R\u00e9gie du logement, you receive, before the audition and from a Bankruptcy Trustee, a notice for the suspension of all procedures in conformity with the Bankruptcy and Insolvency Act(1) (hereafter : \u201cAct\u201d), because your tenant just went bankrupt. Therefore, you will not be&#8230;<\/p>\n","protected":false},"author":3,"featured_media":8637,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[42],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tenant bankruptcy - Droit Locatif<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.droitlocatif.ca\/en\/2020\/07\/13\/tenant-bankruptcy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tenant bankruptcy - Droit Locatif\" \/>\n<meta property=\"og:description\" content=\"Following the introduction of a demand for non-payment of rent to the R\u00e9gie du logement, you receive, before the audition and from a Bankruptcy Trustee, a notice for the suspension of all procedures in conformity with the Bankruptcy and Insolvency Act(1) (hereafter : \u201cAct\u201d), because your tenant just went bankrupt. 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