The Automatic Stay and Eviction
Filing bankruptcy triggers the automatic stay (11 U.S.C. 362), which immediately stops most eviction proceedings. However, there is a critical exception: if the landlord already has a judgment for possession before you file, the automatic stay does not stop the eviction unless your state law allows you to cure the default (and you deposit past-due rent with the court within 30 days of filing).
Chapter 7 and Leases
In Chapter 7, you have 60 days to assume (keep) or reject your lease. If you assume, you must cure all defaults. If you reject (or do nothing), the lease is terminated. Past-due rent becomes an unsecured claim and is discharged. This can help if you want to leave a lease you cannot afford -- the discharge eliminates the remaining rent obligation.
Chapter 13 and Catching Up
Chapter 13 can be powerful for tenants: you can cure rent arrears through the 3-5 year repayment plan while continuing to live in the unit. The automatic stay stops eviction while the plan is being confirmed. This works best when the landlord has not yet obtained a judgment for possession and you have income to fund a plan.
Practical Considerations
Filing bankruptcy to stop an eviction only makes sense if you have a plan to stay current going forward. If your income cannot support the rent, bankruptcy only delays the inevitable. It may be better to use bankruptcy to discharge other debts (credit cards, medical bills) that are consuming income you need for rent. Consider the full picture with a discharge eligibility check.
Frequently Asked Questions
Can I file bankruptcy to stop an eviction?
Yes, if the landlord has not yet obtained a judgment for possession. The automatic stay halts the eviction process. If the landlord already has a judgment, the stay only applies if your state allows cure and you deposit rent with the court within 30 days.
Will bankruptcy discharge past-due rent?
Yes. In Chapter 7, past-due rent is treated as an unsecured claim and is discharged. In Chapter 13, past-due rent can be paid through the repayment plan. Either way, you are not personally liable for pre-filing rent arrears after discharge.
Can my landlord evict me for filing bankruptcy?
No. Filing bankruptcy is a protected right, and evicting a tenant solely for filing bankruptcy may violate the automatic stay and anti-discrimination provisions (11 U.S.C. 525). However, the landlord can evict for post-filing defaults or other lease violations.
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