Wednesday, September 7, 2016
Can I Be Evicted If I File Bankruptcy?
One of the most important assets a person has is their home. Not only is a house the most costly item most families purchase during their lifetime, but it also a safe haven and the place you go to relax and unwind. This is true even if you are not a buyer, but merely renting a place to lay your head each night. One major difference between home ownership and renting is that when you own your home and are not able to make the mortgage payments, the lender will initiate foreclosure proceedings but if you are a renter the action taken is an eviction. If you are behind on rent and many of your other bills you may be considering bankruptcy, but are probably wondering if you will be evicted if you file
Filing bankruptcy puts an immediate stop to several actions by creditors, including:
• An eviction case.
• A wage garnishment.
• A repossession.
• A collection lawsuit.
• A foreclosure.
This is because the purpose of bankruptcy is to give the honest, but unfortunate debtor, a fresh financial start. People cannot get ahead with their budget if they are constantly worried about how to respond to collection calls, letters, or lawsuits. So the law provides that the minute a bankruptcy case is filed, all of these types of actions must come to an immediate stop. This includes an action to evict a tenant from their home. But, be careful, because the immediate stop can only be temporary. If the lender (in the case of a home or apartment rental, the landlord) seeks to have the Court lift the stay that is in place upon filing a case, the types of actions listed above can begin or resume. In order to find out what you need to do to keep your home, or be able to stay in your rental, call us today. We will give you the information needed to make a decision that meets your needs. Our goal is to help get you back on your feet, so you can make plans for a future that is free from financial distress.
For more information about how bankruptcy impacts an eviction, call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.