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Oregon Manufactured Home Community: Bankruptcy and Eviction

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Oregon Manufactured Home Community: Bankruptcy & Eviction

This is a nuanced area where federal bankruptcy law intersects with Oregon landlord-tenant law. Here's an overview — but please consult a licensed Oregon attorney for advice specific to your situation, as this is complex legal territory.

The Automatic Stay (Federal Bankruptcy Protection)

When a tenant files bankruptcy, an automatic stay immediately goes into effect under 11 U.S.C. § 362. This is the most critical factor:

  • The stay halts most collection actions, including eviction proceedings for unpaid pre-bankruptcy rent
  • It applies the moment the bankruptcy petition is filed
  • Violating the stay can expose the landlord to sanctions and damages

However, the automatic stay is not unlimited — and manufactured home community landlords have some distinct rights.

Landlord's Rights

1. Relief from the Automatic Stay The landlord can file a Motion for Relief from Stay in bankruptcy court, asking the court to allow eviction to proceed. Grounds include:

  • Tenant has no equity in the property and the lease is not necessary for reorganization
  • Tenant continues to fail to pay post-petition rent (rent owed after the bankruptcy filing)

2. Post-Petition Rent Must Be Paid

  • Rent that comes due after the bankruptcy filing is generally not covered by the automatic stay
  • The landlord can and should demand timely payment of post-petition rent
  • Failure to pay post-petition rent is grounds to seek stay relief or move to evict

3. Oregon Manufactured Dwelling Park Landlord Tenant Act (ORS Chapter 90) Oregon has specific protections for manufactured home community landlords, including:

  • ORS 90.630 governs termination of tenancy in manufactured dwelling parks
  • For nonpayment of rent, landlords must give a 10 – Day written notice (MHCO Form 82A) before filing for eviction
  • The notice must state the amount owed and the cure period

4. Lease Assumption or Rejection In a Chapter 7 or Chapter 13 bankruptcy, the trustee (or debtor) must decide whether to assume or reject the lease:

  • Assumption requires curing all defaults (including back rent) and providing adequate assurance of future performance
  • Rejection treats the lease as terminated, allowing the landlord to proceed with eviction

5. Pre-Petition Rent as Unsecured Claim The landlord can file a Proof of Claim in the bankruptcy case for pre-petition unpaid rent. This becomes an unsecured debt in the bankruptcy estate — meaning the landlord may receive partial or no payment depending on the case type (Ch. 7 vs. Ch. 13).

Tenant's Rights

1. Automatic Stay Protection

  • The stay immediately protects the tenant from eviction proceedings, wage garnishment, and collection calls
  • Even if an eviction was already filed before the bankruptcy, it is stayed

2. Chapter 13 Reorganization

  • A tenant in Chapter 13 can propose a repayment plan to cure pre-petition rent arrears over 3–5 years while keeping current on post-petition rent
  • This is often the most powerful tool for a tenant wanting to remain in their home

3. Oregon-Specific Tenant Protections (ORS Ch. 90) Manufactured home community tenants have enhanced protections beyond standard renters:

  • Longer notice periods for termination
  • Right to cure nonpayment defaults within the notice period
  • Protections against retaliatory or discriminatory eviction

4. Homestead and Exemption Protections

  • The manufactured home itself may be protected as an exempt asset under Oregon bankruptcy exemptions (ORS 18.395), depending on equity
  • This can affect how the bankruptcy case proceeds

 

Can the Landlord Evict for Nonpayment?

Scenario: Pre-petition rent, stay in place.  Can the Landlord Evict:  No — must get stay relief first

Scenario: Post-petition rent not paid.  Can the Landlord Evict: Yes — after proper OR notice; stay may not protect this

Scenario: Stay lifted by court order.  Can the Landlord Evict: Yes — follow ORS 90.630 procedure

Scenario: Chapter 13 plan confirmed & being followed.  Can the Landlord Evict: Generally No, tenant is in compliance

Scenario: Lease rejected in bankruptcy.  Can the Landlord Evict: Yes — after stay is lifted

Practical Steps for a Landlord

  1. Do not attempt to evict without first consulting a bankruptcy attorney
  2. File a Proof of Claim in the bankruptcy case for unpaid pre-petition rent
  3. Demand post-petition rent in writing immediately
  4. If post-petition rent goes unpaid, file a Motion for Relief from Stay
  5. Monitor the bankruptcy case for lease assumption/rejection decisions

This is general legal information, not legal advice. Oregon manufactured home community law is specialized, and bankruptcy adds significant complexity.  Please consult your attorney with any concerns or questions.