Small Portfolio Desk

1–20 unit landlords

When a tenant files for bankruptcy on DIY landlord software — the automatic stay, rent reminders, late fees, autopay, and your proof of claim

Search intent: a tenant tells you they’ve filed for bankruptcy, or a bankruptcy-court notice shows up in your mail. You manage the unit in RentRedi, TurboTenant, or Avail, and the app is still sending past-due reminders, adding late fees, and lining up next month’s autopay. You need to know what the automatic stay stops, whether you can still take current rent, what happens to an eviction you’ve started or already won, what to do with the security deposit, how to pull a ledger that supports a proof of claim, and how to turn the automation off without wiping the history. Last researched: 2026-10-23, from 11 U.S.C. 362, 365, 502, 524, 525, 553, 727, and 1301 on Cornell LII; Federal Rules of Bankruptcy Procedure 3001, 3002, and 4001 on Cornell LII (restyled text, Dec 1, 2024 amendments); Official Form 410 (04/25) and its instructions, Official Form 101A (12/15), and the Bankruptcy Court Miscellaneous Fee Schedule (effective Dec 1, 2023) on uscourts.gov; D. Colo. L.B.R. 4001-1 (via courtrules.net); In re Diviney, 225 B.R. 762 (B.A.P. 10th Cir. 1998) on Justia; C.R.S. 13-40-104, 13-40-115, 13-40-122, and 38-12-105 (colorado.public.law and Justia); 15 U.S.C. 1681c; and RentRedi, TurboTenant, and Avail help-center and community pages. Not legal advice. Stay violations can cost you actual damages, the debtor’s attorney fees, and sometimes punitive damages. Talk to a bankruptcy attorney before you contact the tenant about money or take any step toward possession.

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None of the three tools has a “bankruptcy” status, a stay flag, or a way to split a ledger into before-filing and after-filing balances. What they have is automation that keeps running unless you turn it off: RentRedi’s default reminder emails the tenant “on the day rent is due and every day after until the rent is paid”; TurboTenant’s reminders “cannot be turned off or customized” while an unpaid charge sits on an active lease; and late-fee rules in all three keep assessing against old balances. Once a petition is filed, the stay bars “any act to collect, assess, or recover a claim against the debtor that arose before the commencement of the case” (11 U.S.C. 362(a)(6)), plus starting or continuing an eviction case and setting off a pre-filing debt against what you owe the debtor, which is the security deposit (362(a)(1), (a)(3), (a)(7)). The order of work: export the ledger as of the filing date, turn off reminders and late fees for the old balance, decide how post-filing payments get applied, freeze the deposit, then calendar the proof-of-claim deadline. Keep accepting current rent. Rent that comes due after the filing is a different bucket, and it’s the one most likely to keep coming in.

What this page is (and is not)

The legal orientation (read before you touch the software)

Evictions: the two residential exceptions (verified statute text)

The lease itself: assume or reject (11 U.S.C. 365)

Security deposit, screening, and credit reports

Feature snapshot (verify on vendor pages)

Capability RentRedi TurboTenant Avail
“Bankruptcy” or stay status, pre/post-petition ledger split None documented None documented None documented. A 2019 community thread about a tenant claiming bankruptcy got peer replies and a community-manager check-in, no guidance
Automated rent reminders Rules per unit (before due, on due date, “when rent is late by X days,” repeatable). Default reminder created at onboarding: due date “and every day after until the rent is paid.” Disable: Rent Reminders page → select rule → X → Save Changes Automatic; “cannot be turned off or customized.” Sent 7 and 3 days before, on the due date, and about 24 and 48 hours after while a charge is unpaid on an active lease. They stop only when the charge is paid, recorded as paid offline, deleted, or the lease no longer qualifies Payment Settings → Communication Options toggles each reminder email (search-index copy of “Customizing the Tenant Payment Email Reminders”; live page didn’t render)
Stop late fees Delete Rule per unit (May 26, 2026 article). Removing a fee already added means editing the charge amount back; if the rule is still on and a balance remains, “a new late fee will be added the following morning” Three levels: Stop Late Fees on one past-due charge; uncheck one-time and daily fees on the recurring rent charge for future rent; delete unpaid fee charges. Settings changes don’t reach charges already past due, so use Stop Late Fees on those Configured per unit, off by default, changeable “at anytime during the lease from your Payment Settings” (Avail staff, Aug 2024). A “Disable Late Fees” article exists; its text didn’t render for us
Payment application order Optional rule requiring tenants to pay oldest charges first. Turn it off so a post-filing payment isn’t applied to pre-filing rent Payments go to charges; partial payments reduce the balance without stopping fees. Check which charge a post-filing payment landed on Month-to-month leases: “all previous balances have to be paid before new charges are automatically generated” (Customer Care, 2024, from our holdover research). An unpaid pre-filing balance can hold back post-filing charges
Block payments or autopay Block All Payments in the tenant’s Edit Details. Landlords can’t cancel tenant AutoPay; tenants cancel in the app or portal. AutoPay pauses automatically if the renter is no longer a current tenant Disable payments (⋮ menu): blocks new and existing charges online, keeps charges, and removes Autopay; the tenant must re-enroll after re-enable, and no one is notified automatically Stop Payments for a lease (education article, from our eviction research). Tenants deactivate AutoPay themselves by 2 p.m. Central the business day before (search-index copy)
Ledger export for a proof of claim Tenant Ledger PDF and CSV with date filters (Charges → More), plus Export Charges (from our eviction research) Payments → Charges and Deposits CSV exports; rent roll export Received Payment Reports and income/expense exports (indexed support; confirm live menus)

Decision table: which path fits?

What you knowFederal / Colorado reading (not advice)Tool path
Tenant says they filed, no paperwork yet Treat it as true until you check. The stay applies from the filing, and once you’ve been told, continuing violations risk becoming willful Same day: export the ledger, pause reminders and late fees, pull any collection referral. Ask for the case number and check PACER or wait for the Form 309 notice
Chapter 7, tenant current on rent Lease likely deemed rejected at day 60, but if rent keeps coming, many landlords leave the tenancy alone. Pre-filing balance is dischargeable Keep the recurring rent charge and autopay. Stop reminders and fees on the old balance. Watch payment application. File a claim only if the notice says assets may be available
Chapter 7, tenant not paying post-filing rent Stay-relief motion under 362(d), or wait for the discharge and get a 362(j) comfort order. Then Colorado’s 10-day demand (13-40-104(1)(d); 5 days for an “exempt residential agreement”) Don’t send a pay-or-quit while the stay is in effect. Keep posting current rent charges for the record and let counsel decide what to send
Chapter 13 Assume or reject before confirmation; assumption needs a cure. Co-debtor stay protects co-signers (1301). Claim deadline 70 days after filing (Rule 3002(c)) Keep current rent flowing; don’t use TurboTenant Disable payments or Avail Stop Payments, which can kill the autopay you want. Export the ledger as of the filing date for Form 410
You won a judgment for possession before the filing 362(b)(22): possession may continue unless the tenant filed Form 101A and deposited 30 days’ rent; object if the cure certification doesn’t fit Colorado law. The money judgment stays stayed Don’t reopen charges or accept a payment that could look like reinstating the tenancy without counsel. Hand the writ (49-day life, 13-40-115(3)) and docket to your attorney
Endangerment or illegal drug use 362(b)(23) certification; effective 15 days after filing unless the debtor objects (362(m)) Your incident log, photos, and messages are the certification’s backbone. See tenant notices & logs
Tenant filed before signing your lease Debts from a lease signed after the petition aren’t pre-filing debts, so the Chapter 7 discharge doesn’t cover them (727(b)). The stay may still protect estate property; ask counsel before evicting Treat it as a normal tenancy in the software. Don’t take “I’m in bankruptcy, I don’t have to pay” at face value

RentRedi: kill the daily reminder, delete the late-fee rule, fix payment order

TurboTenant: Stop Late Fees on each old charge; reminders are the hard part

Avail: turn off reminder emails and late fees in Payment Settings

Preparing a ledger for a proof of claim (Official Form 410)

Relief-from-stay basics (District of Colorado)

Worked example: a $1,850 Colorado house (EXAMPLE DATA)

Hypothetical, for arithmetic only. Single-family house, one tenant, $1,850 due on the 1st, $1,850 deposit, lease April 1, 2026 to March 31, 2027, managed in RentRedi with the default daily reminder, a late-fee rule of 5% (one-time, day 8), “pay oldest charges first” on, and tenant AutoPay on the 1st that failed in September and October for insufficient funds. September and October rent are unpaid; the landlord hasn’t served a demand or filed an eviction. The tenant files Chapter 13 on Tuesday, October 20, 2026. The landlord learns of it from the tenant’s text on Thursday, October 22, and the court’s notice arrives the next week.

Wrong outcomes this avoids (example data):

Checklist: when a tenant files for bankruptcy

  1. Write down how and when you learned of the filing. Get the case number, chapter, and court.
  2. Stop all contact about past-due rent: no texts, calls, notices, or app messages about the old balance.
  3. Export the full ledger and a ledger cut off at the petition date (PDF and CSV). Screenshot each pre-filing charge and fee.
  4. Turn off reminder rules or emails for the unit (RentRedi rule X; Avail Communication Options; TurboTenant: ask support in writing).
  5. Turn off late-fee rules for the old balance (RentRedi Delete Rule; TurboTenant Stop Late Fees on each past-due charge; Avail Payment Settings).
  6. Delete any late fee posted on or after the filing date. Keep pre-filing charges on the ledger.
  7. Turn off “pay oldest first” or any rule that applies new money to old balances.
  8. Leave autopay and online payments open unless counsel says otherwise. Don’t click Disable payments, Block All Payments, or Stop Payments on reflex.
  9. Pull any collection-agency referral and pause any credit-reporting feature for this tenant.
  10. Don’t apply the security deposit to pre-filing rent.
  11. If an eviction is pending, tell your attorney and the court clerk. Don’t take the next step without advice.
  12. If you already hold a judgment for possession, watch for Form 101A and the 30-day deposit, and calendar day 30.
  13. Calendar the proof-of-claim deadline (70 days after filing in Chapter 13 and voluntary Chapter 7 unless the notice says otherwise) and, in Chapter 7, day 60 for deemed rejection.
  14. Prepare Form 410 with the redacted lease, the itemized ledger, and the deposit under setoff; check every late fee against your state’s cap.
  15. Track post-filing rent separately. If it stops, ask counsel about a stay-relief motion and bring the payment history.
  16. After discharge, dismissal, or stay relief, record the outcome in the tenant file, write off discharged amounts with a dated credit note, and only then re-enable any automation (see document vault & lease files).

FAQ

Fit notes for 1–20 units

Honest uncertainty callouts

Related

Educational product research only, not legal advice. What the automatic stay covers, whether you may collect post-filing rent, how a lease is treated, and how to file a proof of claim or stay-relief motion depend on the chapter, the court, your lease, and the facts. Confirm current reminder, late-fee, payment, and export behavior in each vendor’s help center and your live account, and talk to a bankruptcy attorney before you contact the tenant about money or move toward possession.