Bankruptcy and a Landlord-Tenant Dispute

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Bankruptcy and a Landlord-Tenant Dispute

Will a Bankruptcy Stop Eviction?

A bankruptcy may stop or slow down eviction proceedings so that you can get caught up on back rent. However, you need to move fast, if the eviction gets too far along, you may not be able to stop it. You should also be aware that if your landlord can show that you are using the property for illegal activities (such as drugs), or your landlord can provide evidence that you are damaging the property, a bankruptcy probably won’t help much.

Stopping an Eviction

When you file a Chapter 7 bankruptcy, the court issues an “automatic stay” that prevents most creditors from taking any action against you. But, the landlord-tenant relationship, where an eviction has been started, may be an exception to the automatic stay. You should consult an experienced Chapter 7 bankruptcy attorney right away if you are facing an eviction.

Filing for Bankruptcy Prior to the Eviction Judgment

Generally, if you file for bankruptcy prior to the judgment in the eviction case, the court will stop the eviction proceeding, at least temporarily. The landlord would need to file a motion in bankruptcy court requesting to lift the automatic stay and allow them to go forward with the eviction proceeding.

Filing for Bankruptcy After the Eviction Judgment

With few exceptions, filing for bankruptcy after the eviction judgment has been entered, a Chapter 7 bankruptcy will not stop your landlord from evicting you. Therefore, it is important to speak with a Chapter 7 bankruptcy as soon as possible.

A Bankruptcy Won’t Help If You’re Using Illegal Drugs or Damaging the Property

If your landlord has evidence that you are using illegal drug or that you are cause damage to the property, you probably will not get much relief from an eviction action by filing a bankruptcy. Of course, this does give your landlord a few more hurdles to jump over before proceeding but it won’t buy you much time. If you are facing an eviction, call us today! The sooner we get involved, the more likely we can produce a positive outcome in your eviction case by filing bankruptcy.

2018-05-20T06:13:04+00:00

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Written by Tom McAvity, Esq., bankruptcy lawyer
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