Tenant Rights When Your Landlord Declares Bankruptcy

Facing a landlord bankruptcy can be stressful for renters. This guide explains what tenants in Manitoba should know about deposit protections, potential eviction processes, repair responsibilities, and how to interact with trustees and the Residential Tenancies Branch. You’ll find clear steps to document your tenancy, deadlines to watch, and practical examples for filing claims or applying for dispute resolution. The language is plain and focused on tenant rights, next steps, and official resources so you can act quickly to protect your housing, recover deposits where possible, and keep track of repairs and notices. If you rent in Manitoba, these tips will help you navigate the bankruptcy process with confidence and factual next steps.

What happens when a landlord declares bankruptcy?

When a landlord declares bankruptcy, their rental property may be taken over by a trustee or sold. Tenants generally keep their tenancy for the period allowed by law, but there are risks around who holds security deposits, who is responsible for repairs, and whether a new owner will continue the lease. In Manitoba, the Residential Tenancies Branch handles disputes and can advise on priority of claims and whether the trustee must return deposits or honour the agreement.^[1]

Deposits, rent and your rights

Security deposits are a common concern. In many cases a trustee must account for deposits, but who has priority can depend on the bankruptcy process and provincial rules. Tenants should:

• Collect and keep receipts for rent and any deposit payments.
• Document the condition of the unit with photos and a dated inventory.
• Keep a copy of your signed lease and any amendment or receipt for your deposit.

Read more: Understanding Rental Deposits: What Tenants Need to Know and How to Get Your Security Deposit Back with Interest When Moving Out.

Repairs, maintenance and trustees

Even if a landlord is bankrupt, the new owner or trustee is usually responsible for maintaining habitability under provincial law. If urgent repairs are ignored, tenants can apply to the Residential Tenancies Branch for remedies, and may arrange emergency repairs and deduct costs in specific cases under the Act.^[2]

Filing complaints and the forms you may need

Manitoba tenants can use official forms to ask the Residential Tenancies Branch to resolve disputes or to request orders for unpaid rent, deposits, or repairs. Common steps include contacting the Branch, filling the appropriate application and attending a dispute hearing. See the forms page for the current application for dispute resolution and guidance.^[3]

• Application for Dispute Resolution (Manitoba RTB form) — used to ask the Branch to decide about unpaid deposits, repair orders, or claims against a trustee; example: you file to request return of a security deposit after the trustee says funds are unavailable.
• Contact or inquiry forms on the Branch site — use to request information on timelines and whether a notice from a trustee affects your tenancy.

If you need to find another rental

If you must look for a new place because of a sale or change in ownership, use reliable listing tools and confirm lease terms before signing. If you want to search broadly, Find rental homes across Canada on Houseme to compare options and find units that match your needs.

FAQ

Can a trustee evict me immediately after landlord bankruptcy?

No. A trustee cannot usually remove you without following provincial eviction rules; existing leases are important and eviction must follow the Residential Tenancies Act processes. Contact the Residential Tenancies Branch for immediate guidance.^[1]

Will I lose my security deposit if the landlord goes bankrupt?

Not automatically. The trustee must account for funds, but recovery depends on how the money was held and bankruptcy priorities. File an application with the Branch and keep receipts to support your claim.^[3]

How do I file a claim for unpaid repairs or deposits?

Gather evidence, contact the Residential Tenancies Branch, and submit the Application for Dispute Resolution with supporting documents. The Branch can set a hearing and issue orders if warranted.^[3]

How-To

1. Collect documents: gather lease, deposit receipts, rent receipts and dated photos of the unit condition.
2. Record communications: save emails, letters and messages from the landlord, trustee or property manager.
3. Contact the Residential Tenancies Branch to explain the situation and confirm whether your tenancy is immediately affected.^[1]
4. File an Application for Dispute Resolution with the Branch and attach evidence: receipts, photos, and written requests for repairs or refund.
5. Attend the hearing or follow the Branch’s written decision; if an order is issued, use it to request enforcement or payment from the trustee or new owner.

Key Takeaways

• Keep careful records of rent and deposit payments to support any claim.
• Respond quickly to official notices and file applications early to protect priority rights.
• Contact the Residential Tenancies Branch for Manitoba-specific steps and timelines.

Help and Support / Resources

• Residential Tenancies Branch — official information and dispute services
• Residential Tenancies Act (Manitoba) — full legislation
• RTB forms and guides — applications and instructions

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1. [1] Residential Tenancies Branch (Manitoba)
2. [2] Residential Tenancies Act (Manitoba)
3. [3] RTB forms and guides (Manitoba)