Can Bankruptcy Stop Eviction

Now that the U.S. Supreme Court has ruled that the CDC issued moratorium on evictions must end, it stands to reason that landlords may start eviction proceedings shortly.

Before that happens, you should be proactive and take the time to read up on how bankruptcy might be of assistance to you. 

Filing a bankruptcy case can stop (i.e. stay) an eviction proceeding, whether it is in process or even if it has already begun. Any bankruptcy, whether a Chapter 7 liquidation or a Chapter 13 repayment, triggers the “automatic stay” provisions of the bankruptcy code. The automatic stay stops creditors from pursuing collection actions against you as soon as your bankruptcy is filed.

However, the automatic stay would only stop your landlord from evicting you if you filed the bankruptcy BEFORE the landlord obtained an eviction judgment. If your landlord already has an eviction judgment against you, the automatic stay would, generally speaking, not apply. 

If you file for a Chapter 7 bankruptcy before the eviction judgment is obtained, not only will you get your debts discharged if you qualify, you also have the benefit of stopping the eviction proceeding for approximately 90 to 120 days (or more) before the bankruptcy cases concludes and the landlord is allowed to proceed with the eviction. Bankruptcy is beneficial not only to discharge debts, but also instrumental in getting you time. Time to find a new place to live and move your things out at your own pace, rather than having a Sheriff come and forcibly remove you and your things. 

If bankruptcy was something you were considering even before the moratorium was enacted, you should give serious thought about filing for bankruptcy now that the eviction protection has ended. We urge you to contact Tadross Law now for a free consultation about your options in this regard.

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