Your home is something you must never take for granted. If you are experiencing financial difficulties and have fallen behind on not just your rent payments but almost everything else, you may be considering a bankruptcy filing. Being evicted is a devastating experience, but you may have some options if you take a certain legal action. Read on to learn more.
Chapter 7 and the Automatic Stay
There is no better option for those saddled with overwhelming debt than a chapter 7 bankruptcy declaration. This federal filing can halt some collection actions by your creditors, and that includes evictions. Once you file in federal court, your landlord is prevented from filing for your eviction. This action is known as the automatic stay and serves as a very valuable tool to prevent all kinds of bad things, like an eviction. There is no need to wait until your bankruptcy is final to use the automatic stay; the timing occurs upon your initial filing.
Taking Quick Action
The main thing to keep in mind is that the timing of your filing matters a great deal. While a declaration of bankruptcy should not be considered trivial or an impulsive action, waiting too long could cause your financial situation to worsen so much that you end up losing property and getting sued. One major example of that is how the bankruptcy code treats evictions.
Your Landlord Has Not Filed for an Eviction
If you managed to turn in your federal filing before your landlord did, you may have bought some time. The automatic stay will prevent your landlord (or apartment or property management company) from sending you packing. The time limits for evictions vary from state to state, but a federal filing prevents you from having to comply with any notices, regardless of the state.
Getting to the clerk's office first has obvious advantages, but you must understand that this stay is only a temporary one. If you are to stay in your home, you must eventually make good on back rent payments. Fortunately, you may be able to do just that. Once you are no longer having to pay your credit card's monthly minimums, you may have more cash at your disposal. Use that money wisely, and keep a roof over your head.
Your Landlord Has Filed For Eviction
You may not be totally out of luck if the landlord filed an eviction notice prior to your chapter 7 federal filing. Landlord-tenant law varies, and even without a bankruptcy filing, in some cases you may have a certain amount of time to "cure" the debt by bringing your payments up to date and halting the eviction.
Work closely with a bankruptcy attorney, like Charles J Schneider PC, to fend off evictions and get started on a fresh financial future.