Russ Feingold: “current law provides for an automatic stay of eviction proceedings upon the filing of a bankruptcy case. Landlords can…”

“current law provides for an automatic stay of eviction proceedings upon the filing of a bankruptcy case. Landlords can apply for relief from that stay so eviction can proceed, but under current law the process often takes several months. Section 311 of the bill eliminates the stay in all landlord-tenant cases so eviction can proceed immediately. My amendment would allow tenants to remain in their apartments as they try to sort out the difficult consequences of bankruptcy, if and only if they are willing to pay the rent that comes due after they file for bankruptcy. If the tenant fails to pay the rent, the stay can be lifted 15 days after the landlord provides notice to the court that the rent has not been paid. So no hearing and no delay. If the reason for the eviction is drug use or property damage, the stay can also be lifted after 15 days. Under the amendment, this 15-day notice period does not apply if the tenant has filed for bankruptcy previously. In other words, in the case of repeat filings, the automatic stay would never take effect, just as under section 311 in the bill. Under my amendment, therefore, you could never live rent free as some of the opponents suggest. The debtor has to pay rent after filing for bankruptcy. If a debtor misses a rent payment, the stay will be lifted after 15 days. So the amendment gets at the abuse and it protects the rights and economic interests of the landlord. What it does eliminate is the punitive aspect of the bill.”