Bankruptcy & Insolvency Path

When to use this path

• The tenant has filed for bankruptcy/insolvency, or you have credible notice they will.

• A stay of proceedings may limit enforcement actions without approval.

Before you start

Have ready: warranty number, lease, key dates, account statement, tenant communication log, and any bankruptcy/insolvency notices.

Steps + timelines

1) Document outreach (Operator)

Make a documented effort to resolve pre-filing arrears, if possible.

2) Notify Padder (time-sensitive)

Submit the Tenant Default Notification within 16 days of the payment’s original due date (or lease period).

• Select Bankruptcy/Insolvency.

3) File with the trustee (Operator)

Submit a proof of claim with the trustee for pre-filing arrears, post-filing rent, and damages (as applicable).

4) Submit Initial Request (time-sensitive)

Submit within 15 days of filing your proof of claim (where applicable).

Required uploads (Bankruptcy/Insolvency):

• Original signed lease agreement

• Notice of stay of proceedings

• Proof of filing claims with the trustee

• Evidence of efforts to resolve pre-filing arrears (repayment discussions + communications)

• Up-to-date account statement

5) Confirm lease outcome

The lease may be terminated/disclaimed, assigned, or continued.

6) Submit Final Request (timeline depends on outcome)

• If terminated: submit by the earlier of re-renting or 90 days from regaining possession.

• If continued: submit within 30 days of the bankruptcy proceedings concluding.

Final Request uploads: final account statement + supporting cost/mitigation documentation as applicable.

Common reasons for delay

• Notification submitted after Day 16

• Missing trustee filing proof or stay notice

• Incomplete account statements for the period

• Final request timing not aligned to lease outcome