How Can Bankruptcy Impact Renting?

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Bankruptcy proceedings may just be the answer to the financial worry that is significantly weighing you down. However, you must not be rash in filing a petition, as this is a serious decision that may come with serious implications. This is especially true if you are a renter of the apartment or house you currently reside in. Follow along to find out how filing for bankruptcy may impact your renting situation and how a proficient Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can help you make your next move.

As a renter, how can filing for bankruptcy save me?

Notably, upon filing your Chapter 7 or Chapter 13 bankruptcy declaration, the New York bankruptcy court may place automatic stay protection on your rental apartment or house. This means that your landlord may be prevented from evicting you until your bankruptcy proceedings have concluded.

What’s more, the court may eliminate certain eligible debts from your direct financial responsibility. In turn, this may grant you immediate financial relief and thereby more funds to contribute to your monthly rental payments. So even at the finalization of your bankruptcy proceedings, you may be able to maintain a stable living situation in your current residence.

How can bankruptcy impact renting an apartment or house?

Though a bankruptcy filing may protect you from being evicted, it may contrastingly prompt your eviction from your rental apartment or house. This specifically applies if you are undergoing Chapter 7 bankruptcy proceedings, as your landlord may come forward and present the New York bankruptcy court with proof that you can no longer afford your rent, even after aid from bankruptcy. What’s more, you must understand that bankruptcy may only protect you from an eviction if the only issue is your failure to pay rent. With this, your landlord may claim that you have also failed to comply with other legal requirements and conditions of tenancy.

However, your landlord’s attempts may go in vain if you are undergoing Chapter 13 bankruptcy proceedings instead. This is because you may be able to counter that you intend to pay back your overdue payments through your court-approved repayment plan. In addition, you may argue that thanks to this repayment plan, you can now afford to meet your monthly rental payments from here on out, even throughout your proceedings. Again, this is so long as there is no proof that you have violated other legal requirements and conditions of tenancy.

This does not even mention the impact that bankruptcy may have on your future applications for other rental apartments or houses. So even if you are just considering a bankruptcy declaration, it is best that you first consult with a talented Rockland County bankruptcy attorney. Please contact us at The Law Offices of Allen A. Kolber, Esq.