If you are a tenant who is facing eviction due to inability to pay rent, bankruptcy may be a way to temporarily pause your eviction. We include more information about your rights as a tenant below.
How does a bankruptcy stop eviction?
When you file for bankruptcy, an automatic stay goes into effect. The automatic stay ceases all debt collection efforts, including eviction. This is a temporary stop while you figure out your finances and find a way to pay back your overdue rent through Chapter 13, or seek to have it discharged in a Chapter 7.
However, once your bankruptcy case is closed and you fail to continue paying rent, your landlord can continue eviction.
What happens if my landlord gets a judgment of possession?
When you are behind on rent, a landlord can request a judgment of possession (or eviction judgment) to begin the eviction process against you.
If your landlord does not have a judgment or obtains a judgment of possession after your bankruptcy was filed, he/she will not be able to legally remove you from the residence without asking the court for permission.
If an eviction judgment was obtained before bankruptcy was filed, you may still be evicted and the automatic stay may not protect you. Some states allow you to resolve the judgment by resolving the overdue rent within 30 days of your case being filed to prevent eviction.
If you are behind on rent and are at risk of being evicted, file for bankruptcy immediately and contact a bankruptcy attorney.
Can the landlord fight the automatic stay of eviction?
The landlord can request that the court lift the automatic stay and evict you due to nonpayment of rent. Courts usually grant these requests unless you have a compelling reason against it.
If the landlord has a reason to believe you are using prohibited drugs on the property or will endanger the property, it is likely you may be evicted.
Facing Excessive Debt? We're Ready to Help
Timing is important when it comes to filing for bankruptcy and protecting yourself from eviction. Learn more by talking to a bankruptcy attorney at our law firm. The Law Office of Julio E. Portilla P.C., is always available to answer your questions. Feel free to contact us.