Can Bankruptcy Prevent Eviction?
If you have struggled to pay your bills, particularly your rent, then you might have already received an eviction notice, and while you’re left feeling hopeless, as you might be forced to move out of your apartment or home soon, there is still hope for you to stop the entire process thereof altogether.
If you can’t afford to pay your rent, you’re probably struggling to repay your other bills too, which means as scary as it sounds to many individuals, filing for bankruptcy might just be the one thing that saves you.
When the word bankruptcy gets mentioned, people often get filled with fear and would almost look for an alternative method to avoid it.
Filling for bankruptcy is not as bad as most might think, and it could help you more than anything else. It will delay the eviction process, but there is no promise that it would be stopped entirely.
When you file for it, the court will issue you an automatic stay, which will stop the collection agencies from contacting you or continue to do so if they’ve already started to contact you.
During the automatic stay period, you will be able to proceed with the process of filing for bankruptcy. It will also stop pending lawsuits against you, if there are any, from proceeding during this time. Filing for bankruptcy thus helps put your eviction case on hold.
Choosing the right time to file for bankruptcy
With the idea of being able to stop the eviction process, at least for a while, when filing for bankruptcy, the right time to do so is probably before things get too serious. If you feel like you won’t be able to keep up with your rent prior to the date you have to pay it, then filing for bankruptcy is a good idea.
After being granted an automatic stay, it is up to your landlord to allow you to stay or proceed with collections. The best time to file for bankruptcy then would be as soon as you can. If you predict that you are going to receive an eviction notice, you should also file for it immediately.