Bankruptcy and Eviction

A lot of people call my office hoping to file bankruptcy in an attempt to stop an eviction. Filing bankruptcy halts most collection actions. This means that creditors can no longer collect on their loan. Bankruptcy can even halt a wage garnishment or levy. Prior to 2005, bankruptcy could be used to stop an eviction. The Bankruptcy Abuse Prevention and Consumer Protection Act reduced this protection. Now, landlords can evict tenants much easier even if they file bankruptcy.

But what happens if you file bankruptcy before your landlord obtains an eviction order or judgement? This changes things. Landlords cannot start the eviction process if a tenant is in an active bankruptcy. The automatic stay prevents such action. Though this doesn’t mean tenants are in the clear. 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 effect a tenant’s bankruptcy estate, and therefore has little bearing upon the bankruptcy.

Just because bankruptcy generally can’t help you with your eviction doesn’t mean its not a good option for you. If your facing an eviction, you are likely in a rough financial spot and probably dealing with excessive debt. I have represented hundreds as their trusted bankruptcy lawyer in Fairfield, and break free of burdensome debt. Feel free to give us a call for your free consultation.