Bankruptcy of a friend or loved one will usually affect you in some way, and it is something that can usually be overcome with ease.  If it happens to be your landlord that files for bankruptcy, however, you are going to find yourself in a very awkward situation that may cause you to have to pack up and move when you may not be financially able to do so.  Your landlord is responsible for paying the mortgage on the property you rent, and if they do not keep up their end of the obligation the mortgage company has the right to come in and repossess the property in lieu of payment.   

When your landlord files for bankruptcy, he or she may have to give up the property you are letting.  You will not be given a lot of time to find a new place to live, which is one of the major problems for tenants when their landlord has to file for bankruptcy.  The lenders and bankruptcy courts understand that you do need to find a new place to live, but they usually will not give you any extra time to find a new place.  How long you have to move will be determined by the time of mortgage your landlord had on the property and how the mortgage company wants to handle you as the tenant. 

If the landlord had a buy-to-let mortgage then you could have up to two months to find a new place to live once the mortgage company serves notice that they are repossessing the property.  Do not count on this happening, though, because some mortgage companies may decide to keep you on as a tenant and simply send a representative to your home once a month to collect the rent you have been paying all along.  In essence the mortgage company becomes your new landlord.  It is frustrating that you will never know whether or not you will be evicted, but if the mortgage company looks at you letting the place as an asset and keeps you there, it is really a better situation for everyone involved. 

Unfortunately this scenario is only if the landlord had a buy-to-let mortgage.  If the mortgage on the property is a standard mortgage that is being repossessed by the lender, you are no longer going to be authorised to live on the property and the mortgage company is not required to give you any advance warning of repossession.  You could easily come home to find the door locks changed and all of your belongings now part of your landlord's bankruptcy, as the mortgage company has seized the property and everything in it to repay the loan.  The sad truth here is that you may have no recourse to take to get your property back, even if you have a signed lease. 

You should keep the lines of communication with your landlord open at all times, and it is advisable to ask them what type of mortgage they have in the event they have to file for bankruptcy.  Let them know why you are asking because you do have rights as a tenant.  If you landlord is an honest person, they will tell you if they have to file and give you plenty of time to move our before the lender comes to seize the property.