Bankruptcy

You may have heard that a bankruptcy can stop the eviction, but it only delays the process. Federal Bankruptcy law automatically “stays” [stops] an eviction action. However, the over-use of bankruptcy to stall evictions has caused the Bankruptcy Courts to create a special process to quickly reinstate the eviction.

Consequently, if you were to file a bankruptcy with the intent to delay the eviction, the stay could be “lifted” within as little as 2 weeks, and probably less than 4 weeks, and you’re back where you were.

For more information on Bankruptcy, please visit that our sister site bankruptcy preparers.com.

If you were planning to file a bankruptcy anyway, it MUST be filed before trial, not after you lose the trial. Before trial, the landlord has to go to the Bankruptcy Court to get permission to continue with the eviction, and then reset a new date fro the trial, all of which stalls the process anywhere from 2 weeks for 1 month. A bankruptcy filed after you lose your case can avoid your payment of that judgment amount, but it DOES NOT STOP THE LOCKOUT.