Can Bankruptcy Stop Eviction?
Being Colorado’s leading Bankruptcy, we are often asked if filing for Bankruptcy will stop or forestall an eviction.
The answer is both Yes, and No.
With Covid putting so many people out of work and the eviction/foreclosure moratorium having ended due to a 6-3 decision by the United States Supreme Court. Many people are facing a very real threat of eviction and are looking for answers.
Filing for bankruptcy could alleviate some of that stress and buy you another month or two, but it is not guaranteed. Nor is it a long-term solution.
Once a bankruptcy case begins, it triggers what the courts refer to as an “automatic stay.” Among other things, an automatic stay stops your landlord from evicting you. If they haven’t started yet. If they have, they can’t continue to proceed.
While bankruptcy can be used as a strategic tool to stop an eviction, no one would advise counting on it as a permanent solution. The automatic stay is only intended to provide you with temporary relief so that you can relocate, gather the past due rent payment, or work out a solution with your current landlord. It is not intended to be a permanent solution.
However, despite all of this, your landlord is not helpless in these situations either. They have options as well.
This is only one reason why it is imperative to discuss your situation with a skilled bankruptcy attorney to help you navigate the landlord’s challenges and explain the road that lies ahead when you choose this path.
If you have any other questions or would just like to chat about the bankruptcy process and see if it is the right decision for you then please do not hesitate to give us a call.
You have questions.
We have answers.
Our consultations are always free.
The information provided on this site is not legal advice. The attorney listings on the site are paid attorney advertising. Each of the attorneys promoted through this website are promoted based upon their willingness to pay for the advertising. This website is not an endorsement of the attorneys’ services. The site is not a lawyer referral service or prepaid legal services plan. In some states the information on this website may be considered a lawyer referral service. No attorney-client or confidential relationship is or will be formed by use of the site. Photos are models and are not actual clients. Prior results do not guarantee a similar outcome. By an Act of Congress and the President of the United States, the attorneys who advertise through this website are Federally designated Debt Relief Agents. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.