Many people file bankruptcy to prevent or stop some sort of legal action. Usually a creditor is suing them or garnishing their paycheck. The moment we file their petition, that legal action has to stop. When we file, the bankruptcy court issues a protective order, which is also called the automatic stay. It’s “automatic” since it goes into effect the instant the court receives your petition. One other legal action that bankruptcy can stop is an eviction.
One of the first questions I ask during an initial consultation is whether the potential client owns or rents her home. If she rents, I’ll ask her if she is up to date on her rent. If she’s behind on her rent, I’ll want to know if she’s been served with an eviction lawsuit. If she has, we may be able to stop the eviction. That doesn’t mean that the landlord has to let you stay without you having to pay rent, though. Most times a landlord who is due back rent will file a Motion for Relief from Stay that will allow him to move forward with his eviction lawsuit.
Courts will generally grant these motions if one of two circumstances exist. First, if your landlord has already gotten judgment for eviction, the bankruptcy court will allow him to proceed with the eviction. Second, if your landlord wants you evicted because you have endangered the property have illegally been using controlled substances, the bankruptcy court will allow him to go ahead.
If neither of these circumstances exist in your case, the landlord can still ask the bankruptcy court to let him evict you. If you owe back rent, the court will probably let him. At that point, you can try to negotiate with the landlord to see if you can make up the back rent in the future, though. Also, the process to file the Motion for Relief from Stay and have the court rule on it and issue its order takes time. That time may allow you the chance to find another place to live.
If you can’t pay your rent because you have overwhelming debt or your landlord is planning to evict you, we hope you’ll come in for a free, no-obligation consultation with an experienced bankruptcy attorney to learn how bankruptcy may help you. You can schedule an appointment online or call 303.331.3403 to set up a time that is convenient for you.
