Filing for Chapter 13 bankruptcy can provide some relief and may help you stop an eviction, but it's important to understand how it works and the specific circ*mstances in which it can be effective. Chapter 13 bankruptcy is a form of bankruptcy that allows individuals to create a repayment plan to catch up on past due debts, including mortgage or rent arrears, over a period of three to five years. Here's how it can potentially help with an eviction:
Automatic Stay:When you file for Chapter 13 bankruptcy, an automatic stay goes into effect. This stay prohibits creditors, including landlords, from pursuing eviction proceedings or other collection actions against you. It temporarily puts a halt to any ongoing eviction process.
Repayment Plan:In your Chapter 13 bankruptcy case, you will propose a repayment plan to the court. This plan will include a proposal to repay your rent arrears over the course of the bankruptcy plan. If the court approves your plan, you must make regular payments to a bankruptcy trustee, who will distribute the funds to your creditors, including your landlord.
Current Rent Payments: While you are in Chapter 13 bankruptcy, you must continue to make your ongoing, current rent payments to your landlord in a timely manner. Failure to do so could result in your landlord seeking relief from the automatic stay to continue the eviction process.
Compliance with the Plan:To prevent eviction and successfully complete your Chapter 13 bankruptcy, you must stay current on your repayment plan. If you miss payments or fail to comply with the plan, your landlord may seek to lift the automatic stay, and the eviction process could resume.
Was the Eviction Complaint filed before the Bankruptcy filing date?
If the landlord has not obtained a court order for possession of the rental unit, it is much easier to file a Chapter 13 Bankruptcy and force the landlord to legally reinstate the lease. In cases where there is no order for possession of the property, the Debtor can propose payment of the lease arrears over a time period of the first six (6) months of the Plan in addition to the Debtor paying the regular monthly rent payment starting the first month after the Chapter 13 Case is filed.
When the Landlord obtains an order for possession of the rental unit before the bankruptcy case is filed:If the landlord has obtained an order for possession of the property in the eviction case, then in that instance the Debtor must follow a number of procedures to notify the Court and the Landlord of the Debtor's intent to assume ( reinstate) the lease. The Debtor in this situation must also deposit rent and payment towards the arrears with the Bankruptcy Court.
The Debtor should anticipate that the landlord will file a Motion for Relief from stay if the landlord is intent upon removing the Debtor from the property. The Debtor can oppose a motion for relief from stay by following the process summarized above, and by documenting any and all instances where the landlord failed to properly terminate the lease.
An illegal lease termination can include a failure to comply with HUD requirements if the Debtor is living in a rent subsidized rental unit, or if the landlord receives special tax status through HUD for renting to low or moderate income tenants. The landlord must also be in full compliance with applicable Fair Housing Laws under state and federal laws, and follow state law to the letter as far as the requirements for eviction.
Failure to properly terminate the lease can be grounds for the Bankruptcy Court's denial of a motion for relief from stay. The landlord cannot proceed with eviction without first getting an order granting relief from the automatic stay.
In every case, the Debtor must have enough income to pay the monthly rent, the pro-rated payment of the pre-bankruptcy rental arrears and the Chapter 13 Plan payment. An experienced attorney who handles Chapter 13 bankruptcy cases is important in this process, so the Debtor can keep these expenses as low and affordable as possible.
It's important to note that Chapter 13 bankruptcy is not a long-term solution to housing issues, and it's typically used to address specific financial problems, such as catching up on past-due mortgage or rent payments. You should consult with an experienced bankruptcy attorney to evaluate your individual situation, understand your options, and determine if Chapter 13 bankruptcy is the right choice for you.
Additionally, bankruptcy laws can vary by jurisdiction, so it's essential to consult with a local attorney who is knowledgeable about the specific laws and procedures in your area.
FAQs
Chapter 13 Can Protect You From Eviction
How do I stop an eviction in NY? ›
If the court stays the eviction, you must pay money to continue living there in the amount you paid as rent. In a nonpayment case, if you pay the full amount of the rent due to the court before the Marshal does the eviction, the Court must cancel the warrant of eviction.
Can filing bankruptcy stop eviction in Texas? ›
A: Filing for bankruptcy is very unlikely to stop an eviction in Texas permanently. Filing Chapter 7 or Chapter 13 will only place a temporary stop to the eviction during the automatic stay period, but this is only if the landlord has not given you an eviction judgment yet.
Can bankruptcy stop eviction in NY? ›
Likewise, the automatic stay generally prevents eviction until the bankruptcy court has assessed the merits of your case. Nevertheless, in some cases, the automatic stay may be lifted and eviction can proceed, so you must be aware of what is likely to happen in your individual situation and plan ahead.
How do I stop an eviction in NJ? ›
Four ways to stall or stop an eviction in New Jersey
- Pay what you owe in full. If you are being evicted because you did not pay rent, you can stop your eviction by paying everything you owe to your landlord. ...
- Hardship stays. ...
- Order for orderly removal. ...
- Asking for a vacated judgment. ...
- Seek help if you are facing eviction.
Talk to Your Landlord
Since an eviction will cost both of you money (as well as time), you may be able to come to an agreement without going to court. Your landlord may be willing to stop the eviction if you agree to certain terms, such as paying rent you owe or stopping behavior that violates the lease.
How do I remove an eviction from my record in NY? ›
How to get an eviction off your record
- If you believe you were wrongfully evicted, take it to court. ...
- Pay (or settle) your rental debts. ...
- Ask to have collections removed from your credit report. ...
- Ask to have the eviction removed from tenant-screening reports. ...
- Make sure negative actions have been removed.
Bankruptcy Can Halt Eviction But Not Erase It From Your Record.
Can bankruptcy delay eviction in Florida? ›
When you file bankruptcy in Florida, the automatic stay will protect you from eviction unless: The landlord received a judgment of possession prior to the filing of the bankruptcy. A judgment of possession is the final court order in an eviction proceeding.
Can bankruptcy stop eviction in Ohio? ›
If the tenant has indeed filed for bankruptcy then the bankruptcy proceeding will bring the eviction action to a stop. If the landlord has already been awarded restitution at the eviction hearing, the tenant can still file for bankruptcy and stop the eviction process.
In a Chapter 13 case you file a plan showing how you will pay off some of your debts over three to five years. A Chapter 13 case will allow you to keep valuable property which might otherwise be lost, such as your home and car, if you can make the required payments to your creditors.
Can bankruptcy stop foreclosure in NY? ›
Another way to stop foreclosure is to file bankruptcy. Many people don't consider this option, but they should! By filing bankruptcy in New York, an automatic stay goes into effect.
How to file for bankruptcy in New York City? ›
- Collect Your New York Bankruptcy Documents. ...
- Take Credit Counseling. ...
- Complete the Bankruptcy Forms. ...
- Get Your Filing Fee. ...
- Prepare To Submit Your Bankruptcy Forms. ...
- File Your Forms With the New York Bankruptcy Court. ...
- Mail Documents to Your Trustee. ...
- Take a Debtor Education Course.
New Jersey Eviction Time Estimates
| Action | Duration |
|---|
| Eviction hearing | 10-30 days after issuance of summons |
| Issuance of warrant of removal | 3 business days after judgment is entered |
| Time to quit after warrant is posted | 3 business days |
| Total | 3 weeks – 3 months |
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After Judgment for Possession
This could give them up to seven calendar days to move. They can request a hardship stay How to Apply for a Hardship Stay. This could stop the eviction for up to six months. Tenants cannot apply for a hardship stay unless they pay all the money they owe to the landlord, plus any costs.
Can you appeal an eviction in NJ? ›
Even if the landlord does not send you a Notice of Entry, you should file the appeal within 30 days of the decision if at all possible. Unless you specifically ask the original court for a Stay Pending Appeal, the eviction will go forward.
What is the new eviction law in NY? ›
On April 20, 2024, New York enacted the Good Cause Eviction Law (Good Cause), which dramatically impacts the rights and obligations of landlords and tenants in New York by limiting evictions, requiring lease renewals, and capping rent increases for most market rate apartments in New York City, and potentially, other ...
How long does eviction take in NY? ›
New York Eviction Process Timeline
On average, it would take anywhere between 35 days to more than 1 year for a complete eviction process. Give your tenant a written Notice to Vacate before the eviction process. Make sure no mistakes were made in the filing process.
Can a landlord evict you without going to court in NY? ›
In New York State, an eviction of a tenant is lawful only if an owner has brought a court proceeding and obtained a judgment of possession from the court. A sheriff, marshal or constable can carry out a court ordered eviction. An owner may not evict a tenant by use of force or unlawful means.
What is the eviction diversion program in NY? ›
The Eviction Diversion program provides tenants who have received an unlawful detainer (and satisfy other eligibility criteria) with the opportunity (if their landlord agrees) to enter a voluntary conciliation procedure and to receive financial literacy education and financial assistance, as opposed to going through ...
