Bankruptcy by a landlord can be unsettling for tenants. If your landlord in New Brunswick faces insolvency or bankruptcy, your rights as a renter still matter: leases don't automatically end, rent payments usually must continue, and security deposits should be protected. This guide explains practical steps tenants can take right away, the forms and agencies involved, how to protect your deposit and unit, and when to contact the Residential Tenancies program[1] or a trustee[3]. Use the examples and action steps to document your case, respond to notices, and pursue claims through the official tribunal or the applicable legislation[2].
What happens when a landlord files for bankruptcy?
When a landlord files for bankruptcy or receivership, the tenancy generally survives: your lease remains in force until the end of its term or until a proper termination takes effect. A trustee or receiver may manage the property, and a new owner who buys the building usually takes it subject to existing leases. That means your right to occupy and the landlord's obligations for repairs and deposit handling usually continue under the Residential Tenancies Act[2] and the province's Residential Tenancies program[1].
Immediate steps for tenants
- Keep paying rent on time to the landlord or trustee to avoid arrears and potential eviction proceedings.
- Contact the trustee or receiver as soon as you get their contact details to confirm where to pay rent and how notices will be handled.
- Document the unit's condition with dated photos, videos and written notes to protect against wrongful damage claims.
- Keep copies of all notices, letters, and emails; if you receive a termination notice, read it carefully and note deadlines for responding.
Security deposits and refunds
Your security deposit should remain protected even if the landlord is bankrupt. Keep a record of the deposit amount, payment receipts and the move-in condition. If the trustee or new owner claims the deposit, you may need to file a claim with the trustee and, if necessary, pursue the matter through the Residential Tenancies program or tribunal.
- Keep written proof of your deposit payment and any receipts the landlord provided; these are essential when making a claim.
- If a claim is needed, follow the official process and deadlines for filing with the Residential Tenancies program or for filing a proof of claim with the trustee.
For details on deposits and step-by-step guidance, review Understanding Rental Deposits: What Tenants Need to Know and How to Get Your Security Deposit Back with Interest When Moving Out.
Official forms you may need and when to use them
Common official documents and when a tenant might use them:
- Notice to Terminate a Tenancy (name may vary; see provincial forms) — used when a landlord or tenant is seeking to end a tenancy for a permitted reason; example: if a trustee obtains an order to repossess, a termination notice will explain next steps.
- Application to the Residential Tenancies Program or Tribunal (no universal form number) — used to ask the tribunal to decide disputes about deposits, repairs or unlawful termination; example: file an application if a trustee refuses to return your deposit.
- Proof of Claim forms used in bankruptcy proceedings (federal trustee forms) — used to register a financial claim with a bankruptcy trustee; example: tenants list unpaid deposit refunds as a claim with the trustee managing the landlord's bankruptcy.
FAQ
- Can my lease be cancelled automatically if my landlord declares bankruptcy?
- No. In most cases the lease remains valid and enforceable until legally terminated; you should continue to pay rent as directed and follow official notices.
- How do I protect my security deposit?
- Keep receipts, photos and written records, file a proof of claim with the trustee if necessary, and apply to the Residential Tenancies program for recovery if a dispute arises.
- Who enforces tenancy rights in New Brunswick?
- The Residential Tenancies program and the applicable provincial tribunal enforce tenancy rules and can hear disputes about deposits, repairs and unlawful terminations.
How-To
- Continue paying rent on time and get written confirmation of where payments should be sent.
- Document the condition of your unit with dated photos and a written inventory.
- Contact the trustee, the Residential Tenancies program, or legal advice services to clarify your status and options.
- File the appropriate provincial application or a proof of claim with the trustee within published deadlines.
Help and Support / Resources
- Residential Tenancies Program - Government of New Brunswick
- New Brunswick Department of Justice — tenant information and resources
- Office of the Superintendent of Bankruptcy Canada — trustee and bankruptcy guidance
