Due to the coronavirus pandemic many individuals may be dealing with financial hardships and may be worried about falling behind on their ren
t and what options they may have. Many people often ask if filing bankruptcy can stop an eviction? Simply put, yes, filing bankruptcy in New York or New Jersey can stall an eviction. Filing a bankruptcy case can stop an eviction proceeding while the case is in process or before a landlord has filed an eviction action. Filing a bankruptcy to stop an eviction can be a strong tool however, it may not work in all cases. This article will address whether filing for bankruptcy to stop an eviction is a good idea and when you should consider doing this, if at all.
How Does an Eviction Proceeding Begin?
An eviction action usually begins with your landlord filing a lawsuit against you in court because you failed to pay rent or breached your rental contract. To begin the eviction, the landlord must provide you with notice of the eviction action. Many people often assume a landlord can kick them out as soon as they stop paying rent. This, however, is false. A landlord must obtain a judgment of eviction to be able to physically evict you from your apartment.
How Can Filing for Bankruptcy Stop an Eviction?
One of the strongest tools in bankruptcy is the power of the automatic stay. The automatic stay prevents creditors and/or landlords from collecting against you or inititating any lawsuits against you.
Whether you file a Chapter 7 bankruptcy or a Chapter 13 bankruptcy, the automatic stay is implemented. Depending on your financial circumstances it may be best to speak with a New York or New Jersey bankruptcy attorney about which chapter of bankruptcy is right for you. In a chapter 13 bankruptcy, you can pay back your missed rent payments in a 3-5-year plan as long as your landlord agrees to such. This can give you time to spread the payments out to allow you to catch up on your missed rental payments.
In a Chapter 7 bankruptcy your debts get completely wiped out and you are able to start over. Stopping an eviction in a chapter 7 bankruptcy can be a little more complicated. Typically, a landlord will not allow you to continue to stay in their apartment if you can’t afford the rental payments. Generally, filing for chapter 7 bankruptcy allows individuals a way to walk away from their apartment without being held responsible for their missed payments.
Individuals may however, negotiate a deal with their landlord to allow them to stay in their apartment if they file chapter 7 bankruptcy.
In New York and New Jersey, you may be able to stay in the apartment as long as you can show the court that you have all the missed payments and that you can pay the landlord back within 30 days of the filing. Most people who are being evicted don’t have these funds. So, if you find yourself in this situation you are not alone.
Should I Stay in my Apartment if I am Being Evicted?
If you are behind on your rental payments and can’t afford to catch up on your missed payments, it may be time to think about filing bankruptcy and moving into a new apartment. Individuals should ask yourself if it really 
makes financial sense to stay in their apartment while struggling to pay back their missed rental payments on top of their current monthly rent payments. Most people find that filing chapter 7 bankruptcy and walking away from their apartment is typically a better decision.
Will Filing a Bankruptcy Stop an Eviction?
When facing an eviction time is of the essence. As long as the bankruptcy is filed before the landlord gets a judgment against you, the automatic stay will stop the eviction process. This, however, is usually only temporary. It is important to note that landlords are able to lift the automatic stay by filing a motion with the court. Once the automatic stay is lifted the landlord can continue evicting you.
How Can Filing Bankruptcy Help Me If I am Facing an Eviction by My Landlord?
Filing a bankruptcy will not stop an eviction once a judgment is entered against you however, it may give you time to either allow you to catch up on payments or gather your belongings and leave your apartment. Keep in mind, this only applies to missed rental payments. If, however, you are being evicted due to illegal drug use or damage to the property the landlord can continue to evict you even though you have filed bankruptcy by simply filing a certification with the court. Further, if you have filed bankruptcy to stop an eviction previously the automatic stay preventions may be limited.
Speaking with a Bankruptcy Lawyer to Help You If You are Being Evicted
Filing for bankruptcy to stop an eviction can be a complicated process. A bankruptcy attorney may be able to help determine if filing a New Jersey or New York bankruptcy is right for you. If you are facing eviction and need more time to get out of your apartment or now have the funds to catch up on your missed rent payments it is a good idea to contact a bankruptcy attorney who can help you decide what your next steps may be. Karra L. Kingston Esq. is a bankruptcy law firm in New York and New Jersey they can help you figure out what steps to take against your landlord and how to help you if you are being evicted from your apartment.
To learn more about ways to stop an eviction you can visit US News where Karra L. Kingston Esq. was interviewed and featured speaking about eviction.