If you’re a renter behind on your monthly payment, you may be wondering what options you have, if any, to stay in your rental home. Bankruptcy can stop eviction.
Timing, however, is incredibly important if you’re in this situation. Attorney Jen Koss discusses when bankruptcy can stop eviction in this short video.
Rental Eviction? Reach Out.
One question that we get a lot is will filing a bankruptcy stop or slow down an eviction.
Bankruptcy Can Stop Eviction
When you file a bankruptcy, you’re protected by what’s called the automatic stay. This protects you from garnishments, repossessions, foreclosures, and evictions proceedings.
Time is of the Essence
If your landlord has already received a judgment for an eviction, the bankruptcy court will usually always grant your landlord’s request to lift the automatic stay protection to take back the rental property.
However, it could take a month or so for the bankruptcy court to grant them this permission. So it could buy you some more time to find a new place to live.
If you file a bankruptcy before your landlord obtains a judgment to evict, the landlord will not be able to continue those core proceedings or any harassing attempts to collect payment from you. This includes eviction and possession proceedings.
However, the bankruptcy court can and likely will still lift the protection of the automatic stay to allow your landlord to take possession of their rental property. Some states might be kind enough to allow you to cure the rent default, however, it’s not common.
Bankruptcy & Unpaid Rent
Additionally, the balance you owe to your landlord for the broken lease will be taken care of in your bankruptcy like all of your other unsecured debt. Join our private Facebook group to learn more helpful debt resolution tips.