If you are behind on bills like credit cards, medical expenses, and personal loans, you may be overwhelmed with which one to focus on paying off first. Further, you may endure a constant internal battle between paying off these bills and making this month’s rental payment for your home. While you do not want your creditors to come after you, you equally do not want your landlord to place an eviction notice against you. With all these things considered, please continue reading to learn whether filing for bankruptcy is even possible if you still have unpaid rent, and how an experienced Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. P.C. can help you get the protections and relief you so desperately need.
Can filing for bankruptcy stop an eviction if I have unpaid rent?
While you may know that bankruptcy offers certain protections from creditors, you may be unsure how your filing interacts with your pending eviction. Well, simply put, your petition triggers an automatic stay, which essentially halts most eviction proceedings for the time being. However, your landlord holds the right to file a motion for relief from the stay. Here, they may argue that you have fallen significantly behind on your rent payments, and they have no assurance that you will pay now or in the future. Or, they may prove that they already obtained a judgment for possession before your bankruptcy filing date. If the bankruptcy court grants their motion, your landlord may regain possession of the property and resume eviction proceedings.
Will my bankruptcy filing work to eliminate my unpaid rent?
Hopefully, the automatic stay remains in effect, and you get the temporary relief of remaining in your rental property while you navigate your bankruptcy proceedings. From here, your unpaid rent is treated as an unsecured debt in your bankruptcy. This means the bankruptcy court may grant its discharge at the close of your case. Importantly, though, you should know that your landlord can still fight to evict you once the automatic stay is lifted at the end of your bankruptcy. This is because they have the underlying right to repossess the property for any reason, including your past failure to pay rent.
Also, it is worth mentioning that only your past-due rent payments owed before your bankruptcy filing date are discharged. Meaning, during your bankruptcy proceedings, you must remain current with these dues. Otherwise, this is enough reason for your landlord to file a motion for relief from the stay and fight to evict you. And so, if you anticipate it being a struggle to keep up with rent during bankruptcy, even with the allotted protections and assistance, it may be in your best interest to reject the lease. Of note, this is usually something that must be decided within 60 days of filing.
As soon as you find yourself in potential legal trouble, you must retain representation and advisement from a skilled Rockland County bankruptcy attorney from The Law Offices of Allen A. Kolber, Esq., P.C. You should not have to put up this fight alone; we are here to help you.
