Getting evicted by a landlord can add to the financial hardship you might already be experiencing. It forces you to pay for extra costs and services when you are trying to establish a new residence. From renting a truck and buying gasoline to new rental deposits and utility deposits to move into a new location.
If you don’t want to live there anymore, one solution is to move out on your time before you get evicted. You will probably still owe for breaking the lease and back rent, but you may have options to lessen these expenses.
Sometimes filing for bankruptcy can buy you some time in figuring out what you want to do with your living arrangements. When you file for bankruptcy, an automatic stay goes into effect. This stay automatically prevents any legal action against you regarding your debt.
Chapter 7 Bankruptcy
Filing chapter 7 bankruptcy when you get an eviction notice will stop that process from moving forwards while your bankruptcy case is active.
Your trustee will decide to reject or assume the lease. If the rental will be kept, the tenant has 30 days to pay the overdue rent with the court. Chapter 7 eliminates qualifying debt such as credit cards, medical bills, payday loans, and most other unsecured debt making it easier to make your rent payments.
Chapter 13 Bankruptcy
In Chapter 13 bankruptcy, the tenant decides to either move out or keep the lease. If the renter chooses to continue living in the home, they must add the past due rent amounts into the monthly repayment plan. The tenant would have three to five years to make up these payments. In the meantime, they must continue to make the rent payments.
If you are about to lose your home or your landlord is threatening you with eviction, contact a Dayton bankruptcy attorney to discuss what options you may have.