A common question that is often asked is can bankruptcy prevent eviction?
Whether or not your landlord can evict you if you declare bankruptcy depends solely on your specific circumstances. As long as you’re not behind on your rent, and as long as you keep paying your rent, your landlord should never even have to know about your bankruptcy unless you chose to tell them. The truth is that your landlord cannot evict you simply because you filed for bankruptcy.
What if I’m behind on rent and eviction has been started?
The landlord is in a much different position if you are behind on your rent. For example, if he or she has already completed the proceedings for eviction, the landlord can proceed to evict you, despite the bankruptcy. Some states do not allow you to challenge this procedure. If the landlord hasn’t yet filed for eviction, you’re in a much stronger position. It’s important to keep in mind that filing for bankruptcy can still be helpful if you’re behind in your rent. If you’re filing for chapter 7 bankruptcy and you owe back rent, all back rent should be included as a part of your unsecured debt that can be discharged under Chapter 7. Even if you’re filing for Chapter 13 bankruptcy, delinquent rent may be paid back over time, or even partially or fully discharged under chapter 13.
Protection from eviction under the Automatic Stay
Once you file for bankruptcy, the court imposes an automatic stay, which prevents the landlord from evicting you. The landlord can, however, apply to the court to lift the stay. In this case, eviction proceedings could begin with two to four weeks, but you can use this time to move all of your belongings and maybe even find a new place. . If the landlord does not apply to the lift the automatic stay, essentially you will have the entire length of the bankruptcy proceedings before any eviction proceedings may resume.
Remember that during the eviction process you still maintain some rights. For example, the landlord cannot lock you out or remove your property unless they have a court order. The landlord cannot threaten you or otherwise barge into your apartment. Also, although the sheriff can serve eviction papers, he or she cannot arrest you.
Rare instances
There are a few rare cases in which your landlord may become involved in your bankruptcy even if you’re current on the rent. For example, any security deposit that you paid when you moved in must be listed as an asset, and assets may be considered for repayment to creditors unless they are exempt. However, unless the security deposit is for a very large sum, it will likely be exempt and the trustee won’t even bother with it.
Seek Professional Legal Advice
It is very important to speak with an experienced bankruptcy lawyer so you can make informed decisions about your financial future and the protections that bankruptcy may offer. The bankruptcy attorneys at Dantzman & Dantzman can help you file for bankruptcy relief under the Bankruptcy Code.
To schedule an appointment for a free initial consultation please call (414) 831-0427 (Toll Free: 1-877-326-8962) or contact us online and we will call you when it’s convenient for you.