A lot of people call my office hoping to file bankruptcy in an attempt to stop an eviction. Prior to 2005, an eviction could be stopped by filing bankruptcy. The Bankruptcy Abuse Prevention and Consumer Protection Act reduced this protection. The eviction process is now much simpler for landlords, even if their tenant files bankruptcy.
Automatic Stay
However, if a tenant is able to file bankruptcy before the landlord obtains an order or judgment, this changes things. The automatic stay protects the tenant from eviction if the tenant is in active bankruptcy. That being said, a landlord can ask the bankruptcy court to lift the stay, allowing the landlord to evict the bankruptcy filer. Judges usually approve these motions because evictions rarely affect a tenant’s bankruptcy estate, and therefore has little bearing upon the outcome of the bankruptcy.
Just because bankruptcy has a limited impact on your eviction doesn’t mean it’s not a good option for you. If you’re facing an eviction, you are likely in a rough financial spot and probably dealing with excessive debt.
For more information, contact your Modesto bankruptcy attorney at 209-438-4990.