I speak from some experience here as our company has a MHP & defaulted mortgage business (with a couple hundred mortgages). I manage both operations and deal with bankruptcy on over 60% of our loans. So questions and comments:
1. Have you carefully read the LTO contract? Has a BK atty reviewed it?
2. Is this a BK 7 or 13 (or other)
3. Did the person list the home in their voluntary petition as a debt?
4. How long ago did they file? Are you past the deadline to file a proof of claim? Your RTO home may not be eligible as its technically not a loan - I'm not sure - need an attorney to review.
1. If they are in middle of BK you cannot evict. They have an automatic 'Stay' which legally protects them
2. You can try to get a relief from stay, then evict. Note that you need an atty and this will cost you.
3. BK7 usually last around 6 mo but a 13 may last 5 yrs . Your strategy will vary accordingly
1. Pending legal review and how the RTO contract is written, you may want to amend your rules that 'Rent' consists of all payments, incl fees, charges, home and lot rent. Lot rent is applied last. Then is the person is late on lot rent you may have legal rights to evict based on non-payment of rent after getting relief from stay.
Note: Check with your state MH laws as this varies.
2. People in the middle of BK are 'protected' from collectors. Do NOT try to collect from them directly as this can be violation of Federal BK laws. You are better contacting the BK trustee and the tenants BK attorney. We NEVER contact a borrower who is in the middle of a BK.
If you have more questions or info, let me know. I know this is not great news but this is not an ordinary issue.