Bankruptcy is meant to be a way out for people stuck in difficult financial situations. If you’re dealing with overwhelming debt, there’s a good chance you’re also having trouble keeping up with your rent, endangering your housing situation. In those circumstances, it’s natural to ask whether bankruptcy can stop you from being evicted from your apartment.
The short answer is that Chapter 7 bankruptcy can’t always stop an eviction, but it can at least slow it down, depending on the circumstances. Filing for bankruptcy may be an option to block an eviction in the short term and buy yourself more time to find stable housing.
How bankruptcy affects eviction proceedings
Filing for bankruptcy puts you under the protection of the “automatic stay,” a court order that stops all collection actions, including eviction for non-payment of rent. If you file for bankruptcy before your landlord starts the eviction process, then the automatic stay generally blocks eviction from starting.
In general, the automatic stay lasts until your Chapter 7 case is resolved, which usually takes about four months. However, the landlord can go to the bankruptcy court and ask them to lift the stay, so you may not buy that much time in practice.
If the landlord has already started to evict you, then bankruptcy may or may not put the eviction on hold, depending on the terms of your lease, the reason for the eviction, and whether you have filed for bankruptcy before. In particular, if you are being evicted for a reason other than non-payment of rent (such as drug use or illegal activity on the property), then bankruptcy may buy you a little time, but not much.
If your landlord has already gone to court and gotten an eviction judgment, it’s generally too late for bankruptcy to stop the eviction. However, filing for bankruptcy can stop any collection actions your landlord may pursue to recover your unpaid rent.
Talk to an experienced bankruptcy attorney to get back on track
Losing your housing is one of the most life-altering consequences of overwhelming debt and financial struggles. While bankruptcy may or may not be able to help you stay in the same unit, it can often buy you time to find a new place to live. In addition, filing Chapter 7 bankruptcy can eliminate any debt you owe your landlord, along with your other debts, and put you on track to rebuild your finances and achieve greater stability in the future.
The key is to act quickly. The sooner you talk to a bankruptcy attorney, the more options you may have to resolve the situation. If you are struggling with debt, behind on your rent, and facing eviction, contact us online or give us a call today to speak with an experienced bankruptcy attorney at Benjamin R. Matthews & Associates, LLC.
"Mr. Matthews is very kind. Full of information, I am excited to get started with his assistance and get my life back on track. Thank you for letting me work with you." - M. Caskey