Can I Be Evicted If I File for Bankruptcy?
If you are considering a personal bankruptcy filing in South Florida, we know that you are likely to have a wide range of questions and concerns about the implication of the filing, as well as the benefits it will provide for you. One question that bankruptcy filers often want to know is whether they can face an eviction from their home if they file for bankruptcy. This is a broad inquiry, and it does not get at the specific facts of an individual’s circumstances — including whether they are renting or own a home, whether they are behind on rent or mortgage payments, and whether they are considering a Chapter 7 or Chapter 13 bankruptcy. All of these factors can affect the answer to a question concerning eviction and bankruptcy, but our West Palm Beach bankruptcy lawyers can help.
We can discuss the details of your case with you today, and in the meantime, we can tell you more about the potential links between eviction and bankruptcy in South Florida.
Understanding Eviction in Florida
Generally speaking, under the Florida Statutes, the term “eviction” refers to a legal process through which a property owner or landlord can require a tenant to vacate their property. At the same time, the term eviction is often used more casually to refer to the legal process of requiring a homeowner to vacate their property if the property goes into foreclosure and is sold in a foreclosure auction.
If you file for bankruptcy — Chapter 7 or Chapter 13 — the automatic stay will initially stop any pending eviction actions against you. However, the outcome of an eviction action, or the desire for a landlord to initiate one, will depend on your financial circumstances and the type of bankruptcy case you are filing.
Preventing Eviction for Renting Tenants
If you are currently renting your home and planning to file for Chapter 7 bankruptcy, you should not be especially concerned about losing your residence if you are up to date on your rent payments. You will likely be able to work out an agreement with your landlord to continue the terms of the lease. If you are behind on rent payments, the automatic stay will temporarily stop an eviction, but the eviction may occur after you receive a discharge if you do not reach an agreement with the landlord.
Chapter 13 cases are different. In a Chapter 13 case, you may be able to catch up on rent payments and to become current with your landlord in order to remain in your residence.
Avoiding Eviction for Homeowners at Risk of Foreclosure
Chapter 13 bankruptcy is actually one of the tools that is available to homeowners who are at risk of foreclosure. In a Chapter 13 case, the automatic stay will immediately stop any actions designed to move a foreclosure forward, and the homeowner will be able to catch up on mortgage payments through the terms of their repayment plan in order to become current with the mortgage servicer.
The automatic stay in a Chapter 7 bankruptcy case initially prevents a foreclosure from moving forward during the bankruptcy case, but the property will typically be sold at the conclusion of the bankruptcy case.
Contact a West Palm Beach Bankruptcy Attorney Today
Do you have questions about eviction, foreclosure, and bankruptcy? An experienced West Palm Beach bankruptcy lawyer at Kelley, Fulton, Kaplan & Eller can answer your questions today and can assist you with your bankruptcy case.
Sources:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0083/Sections/0083.56.html
