A large number of people think that if they file bankruptcy, their landlord can evict them. This fear is common, but in reality, the automatic stay protection stops any sort of collection attempts and provide protection from eviction as well.
Here are some important facts that you should know about eviction in bankruptcy.
To evict you, your landlord needs to file and win a court case. You will get a copy of this action and need to respond to it. Once you respond to the notice, you will be provided a trial date. On trial day, your landlord needs to prove the case against you. If he wins, then your landlord can evict you. Thus, a landlord can’t evict a tenant without any judgment.
As you know, to evict you, your landlord needs to win a judgment for possession before you file for bankruptcy. So, you need to file bankruptcy before your landlord intimates the courts. Once you file bankruptcy, the automatic stay stops your landlord from processing an eviction.
The automatic stay stops collection actions by creditors once the debtor files bankruptcy. The automatic stay also prohibits the landlord to start the eviction process. To evict, the landlord needs to obtain an eviction judgment. That means, if you have filed bankruptcy and you are behind on rent, your landlord cannot evict you from the residential lease.
The automatic stay stops the eviction, but the stay can be lifted. Here’s how:
The tenant can stay in the property even after the landlord gets an eviction judgment.
In some states in the USA, the tenant who has filed bankruptcy but got evicted by the landlord can stay in the property on a rent rearrange basis. However, the tenant has to follow some criteria when filing bankruptcy.
Though filing bankruptcy can stop an eviction as the automatic stay prohibits any action against the debtor, but this is not a permanent eviction solution. The landlord can still file a motion to lift the automatic stay. If the tenant is behind the rent, then the landlord can take legal action against the tenant.
Thus it is advisable to contact the landlord to make a payment arrangement or make an agreement about the stay or rent rearrangements.
To clear an eviction as you have filed bankruptcy, you can talk with your landlord. Your landlord needs to get the payments paid soon. If you can’t repay it, then request your landlord to make some rearrangement. By doing this, you can clear an eviction.
However, bankruptcy is a critical subject. You may not be able to understand which chapter is good for you. It can be chapter 7 or chapter 13. Thus, it is advisable to consult with an attorney to get the best assistance.