Chapter 7 Bankruptcy
Upon filing a Bankruptcy Case the automatic stay arises. The automatic stay stops nearly all debt collection efforts by creditors. However, the automatic stay may expire as to your landlord after 30 days when an eviction proceeding was pending prior to the Bankruptcy Case being filed.
Pending Eviction Proceeding but No Judgment for Possession
If your landlord has not obtained a judgment for possession before the Bankruptcy Case was filed, then the automatic stay does not expire after 30 days. The automatic stay will remain in effect while the Bankruptcy Case is pending.
A Chapter 7 Bankruptcy Case often is pending 3 to 4 months. Your landlord will be entitled to resume the eviction proceeding after the Bankruptcy Case closes (unless you are current on all rent payments by that time).
Your landlord may not want to wait 3 or 4 months before resuming the eviction proceeding. He may file a Motion for Relief of Automatic Stay. In effect, your landlord is asking for Bankruptcy Court permission to resume the eviction proceeding. The Bankruptcy Court will very likely grant such a motion.
At a minimum, the Bankruptcy Case buys you time to move. Perhaps, as much as 3 or 4 months. In addition, all liability for unpaid rent would be discharged in the Bankruptcy Case.
Judgment for Possession
If your landlord obtained a judgment for possession before the Bankruptcy Case was filed, then the automatic stay expires after 30 days.
The automatic stay will be extended if:
- You file a certification with the Bankruptcy Court within 30 days of the Bankruptcy Case being filed. The certification must state that under non-bankruptcy law you are entitled to cure the entire past due rent.
- You pay into the Bankruptcy Court Registry any rent that would be due within 30 days of the Bankruptcy Case being filed.
- And, your landlord does not object to the certification.
The automatic stay will expire when the Bankruptcy Case is closed (even if previously extended). Unless the entire past due rent has been paid by that point, your landlord will be entitled to possession.
At a minimum, the Bankruptcy Case will buy you an extra 30 days to move. In addition, all unpaid rent would be discharged in the Bankruptcy Case.
Chapter 13 Bankruptcy
The automatic stay also arise when filing a Chapter 13 Bankruptcy case. Again, the automatic stay may expire as to your landlord after 30 days when an eviction proceeding was pending prior to the Bankruptcy Case being filed.
Pending Eviction Proceeding but No Judgment for Possession
If your landlord has not obtained a judgment for possession before the Bankruptcy Case was filed, then the automatic stay does not expire after 30 days. The automatic stay will remain in effect while the Bankruptcy Case is pending.
A Chapter 13 Bankruptcy Case often is a minimum of 3 years but no more than 5 years. A Chapter 13 Bankruptcy is a repayment through the Bankruptcy Court. As such, your plan can cure your past due rent over the life of the Bankruptcy Case.
If your Chapter 13 Plan does not provide to cure your past due rent, then your landlord will file a Motion for Relief of Automatic Stay. Also, if you fail to pay your monthly rent as it comes due after filing Bankruptcy, then your landlord will file a Motion for Relief of Automatic Stay. The Bankruptcy Court will very likely grant such motions.
Chapter 13 Bankruptcy provides you an opportunity to cure your past due rent and not have to move. At a minimum, the Bankruptcy Case buys you time to move to a new place and discharges the unpaid rent (provided you complete the Chapter 13 Plan payments).
Judgment for Possession
If your landlord obtained a judgment for possession before the Bankruptcy Case was filed, then the automatic stay expires after 30 days.
The automatic stay will be extended if:
- You file a certification with the Bankruptcy Court within 30 days of the Bankruptcy Case being filed. The certification must state that under non-bankruptcy law you are entitled to cure the entire past due rent.
- You pay into the Bankruptcy Court Registry any rent that would be due within 30 days of the Bankruptcy Case being filed.
- And, your landlord does not object to the certification.
At a minimum, the Bankruptcy Case will buy you an extra 30 days to move, and all unpaid rent would be discharged in the Bankruptcy Case (provided you complete the Chapter 13 Plan payments).
Conclusion
Your home is very important. You should contact an experience bankruptcy attorney if you are considering filing a bankruptcy case. The Law Office of Brent M. Myer, PLLC offers free consultations.
Call today for your free consultation!