Facing eviction can be an incredibly stressful and overwhelming experience. The fear of losing your home, combined with the pressure from landlords and mounting debt, can make it feel like there’s no way out. However, bankruptcy might be the solution that provides the relief you need. By filing for bankruptcy, you can actually stop the eviction process and gain some much-needed breathing room. Here’s how it works and what steps you can take to protect yourself.
How Does Bankruptcy Help Stop Eviction?
The moment you file for bankruptcy—whether it’s Chapter 7 or Chapter 13—a legal protection called an “automatic stay” goes into effect. This court order immediately halts all collection activities, including phone calls, wage garnishments, and, yes, eviction proceedings. The automatic stay is designed to give you time to reorganize your finances without the pressure of debt collectors hounding you. When it comes to eviction, this stay can temporarily stop the process and provide you with time to figure out your next steps.
How Much Time Does Bankruptcy Buy You?
So, how much time does filing for bankruptcy really give you? Filing will delay the eviction process by at least six weeks. After the first month, the landlord can ask the bankruptcy court for permission to restart the eviction process in housing court. But here’s the good news: often, landlords don’t want to go through the extra work of restarting the process. Instead, they may choose to wait for the three-month bankruptcy protection period to expire. This could give you a total of 3.5 extra months to stay in your home. During this time, you can work on catching up on rent or finding alternative housing.
When Is It Too Late to Use Bankruptcy to Stop Eviction?
Timing is crucial when it comes to stopping an eviction with bankruptcy. In Minnesota, filing for bankruptcy will stop the eviction process right up until the moment the housing court issues a “writ of recovery.” This writ is typically issued after the eviction hearing and allows the landlord to proceed with removing you from the property. Once the writ is issued, it’s too late to use bankruptcy to stop the eviction. That’s why it’s important to act quickly—if you’re facing eviction, don’t wait until it’s too late to file for bankruptcy.
What Happens to the Back Rent?
One of the biggest concerns people have when facing eviction is the back rent they owe. The good news is that bankruptcy can help here, too. If you decide to move out after filing for bankruptcy, the back rent is discharged just like other unsecured debts, such as credit card debt or medical bills. This means you won’t owe that money anymore, and it’s wiped clean from your financial record. On the other hand, if you want to stay in your home, filing for bankruptcy can give you the time and leverage needed to work out a payment plan with your landlord. This extra time might be just what you need to catch up on your payments and avoid eviction altogether.
Know Your Options and Take Action
Eviction is a scary and stressful process, but you don’t have to face it alone. At Walker & Walker, we’re here to help you understand your options and guide you through the bankruptcy process. If you’re worried about eviction and want to explore how bankruptcy might be able to help, call us today at 612-824-4357 for a free consultation. We understand how difficult this situation is, and we’re here to make the process as smooth as possible for you.
We also offer flexible payment plans to fit your needs, and the entire process—from filing your case to attending the hearing—can be done by phone or Zoom. You can get your case filed before you pay anything, so there’s no reason to wait. Don’t let eviction take away your home—take control of your financial future and see how bankruptcy can provide the protection you need. Reach out to Walker & Walker today, and let’s start working together to keep you in your home.
