Can Filing Bankruptcy Prevent Evictions?
Whether you file for a Chapter 7 bankruptcy or a Chapter 13, the Automatic Stay goes into effect that restricts creditors from engaging in collection activities. However, it is important to note that bankruptcy law allows for exceptions to certain creditors, some of which are related to evictions and landlords.
Evictions and Bankruptcy: Filing after your landlord obtains a judgment
Unfortunately, filing bankruptcy after your landlord gets a judgment does not provide much protection. Once your landlord is granted a judgment for the possession of the property, he or she can continue with the eviction even after you declare bankruptcy. Keep in mind that these laws are state specific. In some cases, filing bankruptcy may be able to temporarily delay and even stop the eviction, giving you an opportunity to get catch up on your rent.
Evictions and Bankruptcy: What is the state law exception?
If you reside in a state that allows renters to get current on their rent although their landlord has obtained a judgment for possession, then filing bankruptcy will give you an opportunity to payback the rent due and keep a roof over your head.
To stop the eviction, you will be required to file a certification with your bankruptcy case indicating that the state law permits you to make good on your obligation after a judgment for possession has been entered. At this time, you will also be required to pay the court clerk the amount of rent that will be due 30 days after filing bankruptcy. Thereafter, you will have 30 days to pay back all the arrears owed as well as file another certificate stating that. If you are able to pay back any outstanding rent and file the certification within 30 days, then the automatic stay will protect you from being evicted.
Evictions and Bankruptcy: Filing bankruptcy before your landlord obtains a judgment for possession
If you have filed bankruptcy before your landlord has taken any legal action, then the automatic stay will prevent your landlord from removing you from your home and even giving you a termination notice. It is important to note that you landlord may request for a relief from the automatic stay and proceed with the eviction.
Evictions and Bankruptcy:The ZocLaw.com Way
Our experienced and affordable bankruptcy attorneys at ZocLaw.com will go out of their way to help you during this very difficult time. Call now for a free initial consultation.