After a claim has been submitted under the rent default insurance and a lawyer has been assigned to your case, your tenant will be contacted. Once this happens, we can face four possible scenarios:
1. The tenant pays the rent
2. The tenant refuses to pay the rent
3. The tenant does not answer the property owner or does not appear in court
4. The tenant gives the keys back and does not pay the rent
1- The tenant pays the rent
The lease agreement continues:
The lease will remain in effect if there is a first legal proceeding, and the tenant pays in court (which is known as enervation of the eviction: the eviction is stopped completely due to full payment of the debt). The situation would be different if the tenant were to settle the debt with the property owner out of court.
The lease agreement is terminated:
The agreement is terminated, and the tenant must leave the property.
2- The tenant refuses to pay the rent
A judgement is made in favour of the property owner:
The tenant will be ordered to pay and will be forced to leave the property.
A judgement is made unfavourable to the property owner:
The tenant will stay in the premises and the rent will not be paid. The client will have to return the rent money paid in advance.
3- The tenant does not answer the property owner or does not appear in court
If the tenant does not answer the property owner's communications or if the tenant does not appear in court to address the situation, the judge will terminate the proceedings by ordering the tenant to pay and forcing them to leave the property.
This is usually the most common situation.
4- The tenant gives the keys back and does not pay the rent
The lawyer will request that the court proceedings continue so that the amount owed can be determined and a judgement can be delivered that will allow the property owner to recover legal possession of the property. Once the judge has issued a ruling, if the tenant does not voluntarily pay the amount they have been ordered to pay, an enforcement action can be filed to request the seizure of their assets.