By the time you are facing eviction, you have likely struggled for months with being able to pay your bills. Most people prioritize their rent payment, which means that you have also likely accumulated a lot of debt and let many other accounts go into delinquency before you had to deal with your rent problem. Now you’re facing eviction on top of collections from numerous lenders.
Bankruptcy can give you the debt relief you so desperately need. But can it save you from eviction? That all depends on your circumstances. Here’s what a Gilbert bankruptcy attorney will tell you:
Chapter 7 Bankruptcy
Before a landlord can evict you, they must file a lawsuit against you. The court has to decide in favor of the eviction, and then proceedings can begin. If your landlord has threatened to bring such action against you or has just filed the lawsuit, you still have time to put a stop to it.
When you file for Chapter 7 bankruptcy in Gilbert, what is known as an “automatic stay” will be issued. The automatic stay puts an immediate stop to any collections activities or other action being taken against you. The purpose is to give the court time to review your case and to make a judgement on your behalf.
The automatic stay can put a stop to the lawsuit your landlord brings against you. You will still need to come up with the money to pay your landlord to avoid those proceedings beginning again when your bankruptcy case is settled. But since Chapter 7 bankruptcy liquidates your unsecured debts, it can free up the money you need to pay what you owe – or at least to pay enough to keep your landlord happy.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy in Gilbert is designed to restructure debt for those who still have a good source of income and have some ability to repay their debts. If you started to fall behind on your rent payments, and you know that eviction may be a (near) future possibility), you may consider filing for Chapter 13 bankruptcy to have what you owe your landlord included in your repayment plan.
This type of bankruptcy allows you to pay what you owe at a slower pace. You can use it to pay what you can to your landlord over time and avoid eviction.
Limitations to the Automatic Stay
The automatic stay can’t prevent action from being taken against you in all cases. For example, your landlord can petition the court for relief from the automatic stay. If your landlord has good cause and can prove it to the court, that relief could be granted, and eviction proceedings could continue.
If your landlord brought a lawsuit against you and won before you filed for Gilbert bankruptcy, the automatic stay will not stop those eviction proceedings. Likewise, if you are being evicted because you damaged the property or committed some illegal action, that automatic stay isn’t going to help you.
Working with a Bankruptcy Attorney
Getting debt relief through bankruptcy in Gilbert can be a complex process, but if you are successful, you can obtain enormous debt relief and get the opportunity to start over financially. You just need to work with an experienced bankruptcy attorney to learn how the different types of bankruptcy can help you. If you are trying to stop an eviction, the most recommended course of action will be much different than if you are trying to get rid of credit card debt. Your Gilbert bankruptcy attorney can help you understand how the intricacies of bankruptcy affect what you are trying to accomplish, and how your individual financial circumstances will best be helped.
Call Gilbert Bankruptcy Lawyers today to learn more about your options through bankruptcy. We’ll review your financial circumstances and talk through your special circumstances, such as if you are facing eviction or foreclosure. We’ll then make tailored recommendations on the best course of action through bankruptcy will be to attain maximum debt relief. Contact our office today to talk through Chapter 7 bankruptcy, Chapter 13 bankruptcy, and other options. We’re ready to help you find a way out from your struggles and to start rebuilding your life.