> An insolvent tenant that has not yet filed for bankruptcy can usually be summarily evicted under contract law, but previously, collecting such evidence of insolvency was time consuming and not cost effective, giving the tenant time to pull out of their tailspin before missing rent payments and filing a bankruptcy petition.
The ability to evict someone before missing rent payments seems absurd. Are you saying this is an element of simple 'contract law' somehow, or that, often, boilerplate leases (contracts) specifically have clauses that allow eviction over insolvency without missing rent payments?
I'm not sure what will happen in the future, but I would be surprised if an AI model estimating a person's insolvency would meet requirements of evidence. Maybe the AI knows the renter, say, used a payday lender twice in the last month and that has a 98% correlation with insolvency in the next three months (making up all these numbers, I have no idea, but it sounds almost believable). I would still be surprised if a judge allowed this to become evidence of insolvency. But of course it depends on the jurisdiction.
What is absurd is the new ability for a landlord to each morning see a list of notifications that open to the financial dossiers of those of tenants that were flagged by an overnight AI analysis as being factually insolvent, based solely upon realtime "permission based access" to those tenants personal financial accounts. The "AI model estimating a person's insolvency" is not itself evidence, but the dossiers that were flagged by the AI is direct evidence because it is composed of actual financial statements created directly by the tenants own banks, along with a credit reports showing the tenant's trade-line performance.
The ability to evict someone before missing rent payments seems absurd. Are you saying this is an element of simple 'contract law' somehow, or that, often, boilerplate leases (contracts) specifically have clauses that allow eviction over insolvency without missing rent payments?
I'm not sure what will happen in the future, but I would be surprised if an AI model estimating a person's insolvency would meet requirements of evidence. Maybe the AI knows the renter, say, used a payday lender twice in the last month and that has a 98% correlation with insolvency in the next three months (making up all these numbers, I have no idea, but it sounds almost believable). I would still be surprised if a judge allowed this to become evidence of insolvency. But of course it depends on the jurisdiction.