Can Filing for Bankruptcy Stop an Eviction?

Admin on February 3, 2023 Posted in Bankruptcy Law, Blog

Facing eviction can be a stressful and difficult experience. If you are considering filing for bankruptcy to stop an eviction, there are certain things you should know before making your decision.

A bankruptcy attorney can help you understand the potential benefits of using bankruptcy to prevent an eviction. Get in touch with a Bay Area bankruptcy attorney at the Law Offices of Melanie Tavare to discuss your particular situation and determine your best course of action to stop an eviction.

What is Bankruptcy?

Bankruptcy is a legal process by which you seek relief from creditors and declare your inability to pay debts. There are several different types of bankruptcies available, including Chapters 7, 11, 12, and 13. Each type provides different levels of protection from creditors, but let’s focus on Chapter 7 and 13 bankruptcies if your goal is to stop an eviction.

Can Chapter 7 Bankruptcy Stop an Eviction?

Chapter 7 bankruptcy is typically used when an individual or business has no disposable income or assets that can be used to repay their debt. In most cases, filing for Chapter 7 bankruptcy will result in the discharge of all eligible debts and a halt to any collection attempts by creditors.

If you are facing eviction due to non-payment of rent, Chapter 7 bankruptcy may only provide a temporary solution. In most cases, this chapter cannot permanently stop an eviction. Instead, see filing for Chapter 7 bankruptcy as a way of buying yourself some time in order to find a new place to live.

Note: Keep in mind that landlords in California are required to follow a strictly regulated eviction process, which is described on the official website of the Judicial Branch of California.

Can Chapter 13 Bankruptcy Stop an Eviction?

As for Chapter 13 bankruptcy, this type of bankruptcy could be more advantageous if your goal is to stop an eviction. Chapter 13 bankruptcy is typically used when an individual or business has some form of disposable income but is unable to pay off their debts in full.

It provides more protection than Chapter 7 because it allows individuals or businesses to propose a repayment plan over 3-5 years that pays back some or all of their debt while protecting them from collection attempts by creditors and stopping foreclosures and evictions in most cases.

Filing for bankruptcy under Chapter 13 involves preparing a repayment plan. If you can convince your landlord to include your past rent as part of your repayment plan, it is likely that you can avoid eviction. In either situation, it is highly recommended to seek legal counsel before deciding to file for bankruptcy under Chapter 7 or 13.

Consult with a Bankruptcy Attorney Today

Filing for bankruptcy can be a difficult decision with far-reaching consequences. However, if you’re facing eviction, it may be worth considering as an option to protect yourself from further financial hardship. Consult with Melanie Tavare, a bankruptcy attorney serving the Bay Area, to discuss which type of bankruptcy would provide the best solution for your needs. Schedule a free case review today by calling 510-255-4646.