Will filing for bankruptcy stop an eviction? What happens if my tenant files for bankruptcy? These are questions that we are often asked by our clients.
As a tenant, if you file for Chapter 7 bankruptcy just to avoid or prolong imminent eviction, you face the possibility of being in violation of the Bankruptcy Code and having legal action taken against you by the federal government. If you are filing the bankruptcy, however, in good faith and are truly faced with burdensome debt then the bankruptcy may delay your eviction temporarily. Your landlord can still file for relief (submit a motion to the court) from the automatic stay and be granted permission to move forward with eviction. If your landlord has already been granted a judgment for possession of the property and you file bankruptcy afterwards, then there is little you can do to prevent the eviction at that point. You may be able to file a certification with the court and post money to cover any impending rent due in the next 30 days and be granted 30 days to cure your rent deficiency, if rent default is the issue at hand.