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As long as a final order has not been issued, filing for bankruptcy can help you avoid being evicted from your house or apartment. It can also erase the debt you owe your landlord in past due rent. That’s because rent is an unsecured debt (like many other debts) that can be discharged via bankruptcy. If an eviction is already on your credit record, it is not likely to be completely erased from your credit report. That said, bankruptcy can help you deal with the long-term effects of an eviction.
Bankruptcy is a complicated matter. If you are represented by a lawyer, they will explain how and when bankruptcies clear evictions and when they do not. Your lawyer can also explain how some debt you owe the landlord may not be discharged, which can include intentional damage to the residence. They will also explain your rights and your landlord’s burden of proof.
Bankruptcy Can Halt Eviction But Not Erase It From Your Record
Eviction is the legal process a landlord uses to remove a tenant from their property. In most cases, eviction is the result of unpaid rent, although this is not the only reason a landlord might have. Eviction is a state law issue. If your eviction results in an order to pay back rent and other damages or compensation to your landlord, this resulting debt could be discharged as part of a larger bankruptcy case.
A bankruptcy lawyer in your area can explain your available options. If your eviction is still pending, bankruptcy’s automatic stay can stop the eviction while your case is pending. Like all other creditors, your landlord will receive notice of your filing and of the automatic stay, which prevents them from contacting you about the debt.
What Remedies Do I Have if I Have Been Served an Eviction Notice?
Getting a notice of eviction can be scary and stress-inducing. No matter what, do not ignore it. You can remedy an eviction by paying the back due rent, moving within the allotted time, or challenging the eviction in court.
These are not your only alternatives. If you are overwhelmed with debt, you could benefit from contacting a bankruptcy attorney right away. They can help you file for bankruptcy and stop the eviction from moving forward. Hiring a lawyer is beneficial because your landlord can ask to have the automatic stay lifted. Your lawyer can help you fight this request and stay in your home while you await bankruptcy relief. But it is very important to act quickly.
How Can Bankruptcy Help Me Stay in My Residence?
Often, when people think of staying in their home during bankruptcy filing and procedures, they think of avoiding foreclosure and the loss of their home. The protections of bankruptcy can also:
- Delay or stop the eviction process right away
- Prevent collection efforts to request payment of back rent
- Free up income that can let you catch up on back rent
Bankruptcy can be filed under several different chapters. Chapters 7 and 13 are specifically for individuals as opposed to businesses. Your lawyer will help you determine whether Chapter 7 or Chapter 13 is the right choice for you and how it can help with your pending eviction.
What Other Financial Relief Can I Get by Filing for Bankruptcy?
Bankruptcy can help you hold on to certain property and assets. This, along with the automatic stay, are two of its primary benefits. It can:
- Prevent the loss of your residence
- Clear certain unpaid tax debts
- Eliminate certain student loan debt
- Avoid the loss of your vehicle
- Prevent creditors from hounding you
Bankruptcies can also mean certain debts are fully discharged, meaning you will never have to repay them. Filing for bankruptcy can also include credit counseling and education, which can help you make solid financial decisions going forward. This type of consumer education can help you avoid subsequent bankruptcy filings.
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How Can a Lawyer Help With My Bankruptcy and Eviction?
Financial stress can be stressful in a multitude of ways. It can be hard to make day-to-day spending decisions when your debts and creditor demands are greater than your income. Bankruptcy was designed to meet the needs of individuals in this financial position.
When you work with a bankruptcy lawyer, they will:
- Clarify when bankruptcy is the right financial option
- Identify the appropriate bankruptcy chapter for you
- Explain which debts are eligible for discharge
- Help you retain your home, vehicle, and other property
- Explain how filing bankruptcy might affect your taxes
- Complete and file all required forms and schedules
Your lawyer will offer guidance and direction in every aspect of your case. Their goal is to help you get a new start and the opportunity to build a strong financial future without the burden of insurmountable debt.
Do I Need a Lawyer to File for Bankruptcy?
The process of filing for bankruptcy is complex and time-consuming, so having a lawyer can benefit you. In fact, the United States Courts guidelines themselves strongly recommend hiring an attorney.
Not hiring a lawyer does not exempt you from complying with all applicable laws––nor does it exempt you from understanding and correctly applying bankruptcy’s regulations. You must complete all forms, schedules, and filings in the same timely manner as a filer who has legal support would.
Find Out How You Can Benefit From Bankruptcy Protection
If you have or are facing the stress and uncertainty of eviction, filing for bankruptcy can help you get the financial relief you need to start making timely payments. Our bankruptcy attorney will handle your case and explain how bankruptcy can help you avoid being evicted.
Learn more about your rights and responsibilities by contacting Farmer & Morris Law, PLLC.
