How Can Chapter 13 Bankruptcy Stop an Eviction?

You may have been struggling to make ends meet for a few consecutive months now. This may have affected your ability to pay your landlord your monthly rental payments in full or at all. While your landlord may have been generous enough to show sympathy toward your situation thus far, it may be only a matter of time until they are left with no choice but to commence eviction proceedings against you. So before it gets to this tragic point, you may want to declare Chapter 13 bankruptcy. Please follow along to find out how Chapter 13 bankruptcy can work to stop an eviction and how a proficient Louisville, Kentucky Chapter 13 bankruptcy lawyer at Schwartz Bankruptcy Law Center can help you stay put.

How does Chapter 13 bankruptcy work to stop an eviction?

You may let out a brief sigh of relief when learning that a Chapter 13 bankruptcy filing can stop an eviction. This is because, immediately upon filing this petition, an automatic stay may be placed on your rental property. Meaning that your landlord may be barred from pursuing any eviction activities against you for the time being. It is worth mentioning that this may only work out if you file your Chapter 13 bankruptcy petition before your landlord gets an eviction judgment.

With this, though, you must be financially capable of giving your landlord the back rent within a reasonable timeframe (i.e., within approximately 30 days). Soon after, you may be expected to negotiate an agreement with your landlord in which they let you stay put on the rental property. Then, with your three- to five-year repayment plan, you will remain current with your monthly rental payments thereafter.

Why can’t Chapter 7 bankruptcy stop an eviction?

You may have noticed that this blog has only discussed the possibility of stopping an eviction with a Chapter 13 bankruptcy filing. This is because the reality may not be the same for Chapter 7.

At the very most, Chapter 7 may simply delay the inevitable of your being evicted from your rental property. That is, your landlord may proceed with obtaining an eviction judgment in a few short months, once the automatic stay is lifted at the end of your bankruptcy proceedings. Overall, while the debt owed to your landlord may be discharged in your bankruptcy proceedings, they may still expect you to move out afterward.

Or, your landlord may not even wait the months until your bankruptcy case has closed. Instead, they may exercise their right to file a motion to lift the automatic stay. If successfully granted, they may proceed with obtaining an eviction judgment in the midst of your case.

If you think now is the time to get started on your bankruptcy filing, then please reach out to a talented Louisville, Kentucky consumer bankruptcy lawyer. Our team at Schwartz Bankruptcy Law Center is well-equipped to take on your case.