Can Chapter 13 Stop an Eviction?

Can Chapter 13 Stop an Eviction?

Among all of your monthly expenses, rent is likely the most substantial. Falling on hard times can cause you not to be able to pay your rent. If you stop paying your rent, it will not be long until your landlord begins the formal process of removing you from your home or apartment known as eviction. If you have no other place to live, this is incredibly worrisome. You may not have many options, but Chapter 13 bankruptcy might be a viable one to stop the eviction process. Meeting with an experienced North Carolina bankruptcy attorney can significantly improve your situation if you decide to take steps to stop an eviction.

Will Filing Chapter 13 Stop an Eviction?

In many cases, filing a Chapter 13 bankruptcy petition will stop eviction proceedings temporarily. However, it is not a long-term solution in itself. Stopping this process might allow you to save money to pay your landlord any past due rent that you owe or to negotiate a mutually workable agreement. Since your bankruptcy can eliminate some of your other debts, this might allow you the finances you need to pay for your housing expenses.

Bankruptcy has the potential to temporarily stop the eviction process only if:

  • The eviction process has not reached a certain point
  • State laws allow you to catch up on your rent
  • Your landlord is not alleging drug use on your part or any dangerous conditions leading up to the eviction process

When you receive a consultation with a North Carolina bankruptcy lawyer, you can learn more about how bankruptcy can potentially stop your eviction and if filing for bankruptcy is a solution in your situation.

The Automatic Stay and Eviction

When your North Carolina bankruptcy attorney files your bankruptcy petition with the court, the automatic stay immediately goes into effect. The automatic stay prevents your creditors, including your landlord, from proceeding with any collection actions. Since eviction is a collection action, your landlord must stop their efforts to have you evicted. If they have already received an eviction judgment from the court, your attorney can advise you of the next steps to take. It is also possible that your landlord will file a motion to have the automatic stay lifted for them due to the fact that their interests are not protected. Considering this, bankruptcy itself is only a temporary solution to stop an eviction.

Long-Term Solutions

In some cases, you can work with your landlord and the bankruptcy court to remain in your home. This involves including any past due rent or fees in your Chapter 13 bankruptcy payment plan as well as staying current on your monthly rent each and every month. However, your landlord is not required or obligated to accept your repayment plan or to work something out with you. If you will not be able to pay back rent in a payment plan and stay current on your rent, a Chapter 13 filing is likely not a good option when it comes to staying in your home. Even if you are evicted, bankruptcy can wipe out your personal financial obligations to your landlord. In this situation, you will need to leave the home, but you will not owe the landlord any money.

Are You Facing Eviction? Take Action by Calling a North Carolina Bankruptcy Attorney Today

If you are facing an eviction, reach out to a skilled North Carolina bankruptcy lawyer at King Law Firm by calling (855) 206-0052 or use our convenient online contact form. Schedule a free no-obligation bankruptcy case evaluation to find out if Chapter 13 bankruptcy is an option for stopping your eviction. The sooner you act, the more options that might be available to you.