Can You Stop an Eviction by Filing for Bankruptcy in Los Angeles?

Yes, you can stop an eviction—at least temporarily. Bankruptcy might be just what you need to get your financial house in order, save up some money, and then catch up on unpaid rent. However, renters must realize that filing for bankruptcy won’t work in all situations. You might file too late to obtain relief, so callResolve Law Firm today to speak with our Los Angeles bankruptcy attorney in a private consultation.

How Bankruptcy Stops an Eviction

Landlords start an eviction proceeding usually because a tenant has stopped paying rent. The proceeding is necessary because a landlord cannot just toss your belongings out on the sidewalk. Instead, state law requires that landlords go through a process and obtain a court judgment granting them possession of the apartment.

When a person files for bankruptcy, an automatic stay is triggered. This stay prevents your creditors from taking any legal action to collect on a debt, including any attempt to evict you. The eviction stops in its tracks.

The stay is temporary. It will conclude when your bankruptcy case ends. However, that might be enough time for you to pull together money and “cure” the amount of unpaid rent that is due. You could also negotiate a payment plan with your landlord, which might prompt them to withdraw any eviction proceeding.

When is Bankruptcy Not Effective at Stopping an Eviction?

Sometimes it is too late to stop an eviction. It depends on where your landlord is in the process. The state court proceedings might have concluded, in which case the automatic stay will not prevent the landlord from getting the sheriff to evict you from the apartment.

The Bankruptcy Code states that the automatic stay does not apply to a landlord who has obtained a judgment for possession before the date of the bankruptcy filing. See11 U.S.C. § 362(b)(22).

Suppose your landlord obtained the judgment for possession on July 1 and you filed for bankruptcy protection on July 2. In that case, they can go ahead and evict you from the premises on July 3, even though your automatic stay was triggered.

It is critical to act fast if you have received notice of eviction proceedings. Landlords must provide at least a 3 days’ notice to tenants who they want to evict.

What if Your Landlord Has Already Obtained an Eviction Judgment?

The Bankruptcy Code also allows you to stop eviction for at least the first 30 days, even if your landlord has already obtained an eviction judgment. You must take the following steps:

1. Complete Official Form 101A. This form will ask for information about your landlord’s name and residence, along with other information.
2. File Official Form 101A with your petition and other documents with the Bankruptcy Court.
3. Serve a copy of Official Form 101A to your landlord.
4. Deposit with the bankruptcy court what rent will be coming due within 30 days.

If you follow these steps, you can stay in the apartment for at least 30 days, even if your landlord already has a judgment against you and is ready to evict.

Call Resolve Law Firm. We can fill out all these forms and ensure they are completed accurately. Making even a simple mistake could be devastating. We can also review what other steps you might take to stay in your apartment.

Can You Keep Your Lease?

You might want to keep your apartment. Helpfully, you have options in a Chapter 7 bankruptcy.

For one, you can assume the lease, which means you continue to pay the rent and fulfill other obligations under its terms. To do this, however, you need to get current on your rent within 30 days. That means paying off all that you owe, while remaining current on rent payments moving forward.

Let’s say you owe three months’ rent when you file for bankruptcy in April. You need to pay off those three months of rent, while continuing to make payments in May, June, July, and so on.

Can You Get Out of a Lease?

Often, the lease is so expensive you want to get out of it. There is good news: you can reject the lease in bankruptcy. This rejection will terminate your rental agreement, which is a convenient way to get out of the lease and not owe rent going forward.

It doesn’t matter if there are 9 or 11 months remaining on the lease. Once you reject it, you won’t have future rental obligations to this landlord.

Nonetheless, even after rejecting a lease, you still are responsible for overdue rent that you incurred before the rejection. That will have to be included in your bankruptcy.

Using a Chapter 13 Bankruptcy to Stop Eviction

The automatic stay also applies to aChapter 13 bankruptcy, so you can stop an eviction by filing this “wage earners” bankruptcy. The Chapter 13 process takes 3-5 years to complete.

You can also assume your lease in Chapter 13, allowing you to stay in the apartment. However, you might roll your unpaid rent into your bankruptcy payment plan, so you end up with more time to catch up on past-due rent payments.

You can also reject a lease in Chapter 13 if you are hoping to move into something less expensive. That might be the best move as you try to keep up with your monthly payments on the bankruptcy plan.

Contact Resolve Law Firm

Being thrown out of your home is scary, but the law does provide some help. With a bankruptcy filing, you can stop most evictions and stay in the apartment as you sort your finances out. Even if you are far along the eviction proceedings, you might still get an extra 30 days before being evicted.

Call Resolve Law Firm. We provide counseling services to distressed consumers. Filing for bankruptcy might free up money which you can use to pay any past-due rent and stay current moving forward. Call us to discuss your situation in a confidential consultation.