Everyone wants to own their own home or apartment, but you are more likely to see people end up leasing or renting a home instead. This is especially common with people who live in large metropolitan cities. The pros attached to renting involve rising values of property, flexibility, and smaller spaces that contribute to why most people prefer renting than actually buying themselves an apartment or a house to live in.
The biggest disadvantage of renting is that there is significant uncertainty attached to it. Renting out a place is always risky. There are chances the owner may wish to sell the house, or suddenly decide they need new tenants, the rent may be more than what you can easily afford, and so on.
Fortunately, cities like New York and Los Angeles have distinct laws with tenant rights and protections involved, which even allow delaying the eviction process while you can make up for your accrued rent expense. You’re probably wondering if you can do something in the event that your rent payment is unaffordable. Fortunately, laws have made it easier for tenants as it provides an extra form of protection from eviction.
A file for bankruptcy could prevent the eviction
If you were to file a bankruptcy case, it allows you to have an ‘automatic stay’ that must be taken into effect as soon as possible. The leverage of the automatic stay prevents landlords from asking you to evict the premises and may put a halt to the process that has or may have started prior to the bankruptcy being filed. Fortunately, your landlord is also legally prevented from charging you any amount of money you may have owed during the process of your case file.
Your landlord will not be able to file an eviction case against you (the tenant) in court. This is when you are unable to pay your due expenses, and you file for a bankruptcy case instead. To top it off, your landlord will not add to your already outstanding expenses during your time in bankruptcy.
- In the event of the landlord receiving a judgment of possession before you opt for filing a bankruptcy case, the option of ‘automatic stay’ does not stop you from getting evicted.
- Towards the end of the eviction case, if the tenant chooses to stay at home, they must fulfill the requirement to pay remaining dues with the bankruptcy court within a month of the day the tenant files for the case.
- For a tenant who has filed two or more active bankruptcy cases (that have been dealt with in the past year), the option for ‘automatic stay’ cannot be implied again and expires automatically within 30 days.
- There may be limitations involved for the tenant wishing to stop an eviction if the reasons for eviction are non-monetary. Therefore, it becomes relatively more difficult.
Certain rules and laws apply accordingly when filing for a bankruptcy case. You may want to check with your lawyer to discuss requirements that are compatible with your case. Timing is an important factor, so make sure you consider this process before your landlord receives a judgment of possession.
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