Today I want to answer the question: I’m about to be evicted from my home. Can I file bankruptcy and stop the eviction?
Well the answer to that question depends on where you are in the eviction process. If there is a judgment for possession that’s been given to your landlord, you have very, very narrow options. What you need to do, is you need to pay one month’s rent into the bankruptcy court when you file your bankruptcy case. The bankruptcy system is basically giving you 30 days to figure out how you’re going to cure the arrears. But to buy those 30 days, you’ve got to pay 1 month’s rent into court when you file your bankruptcy case. And, that’s the only way to stop the eviction if there’s already been a judgment for possession.
Now, if there’s not a judgment for possession, you have more options. Because then you can file your bankruptcy case, usually a Chapter 13 although it could be a Chapter 7, and that stops the process from moving forward so the landlord can’t get a judgment for possession against you and that will give you more time than if they already have the judgment.
For example, you don’t have to file the bankruptcy case with the 30 days rent prepaid. So, if you don’t think you’re going to be able to get your rent payment together before the judgment of possession, you would do well to run to a bankruptcy lawyer and get your bankruptcy case filed as soon as possible that you have more options in the bankruptcy.