If you find yourself in a position where you’re struggling to pay your bills you’re often left to decide between paying your rent and being able to afford to eat, pay for your water and keep the lights on. This is the face of modern America, and doesn’t look set to change in the near future. The good news is, under specific circumstances, that your landlord can’t simply change the locks and evict you – there’s a legal process to follow.
Prior to 2005 declaring bankruptcy was enough to put an automatic stay on your creditors, including your landlord, preventing them for pursuing you for rent arrears. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 states that declaring bankruptcy can only prevent your eviction in certain circumstances.
Your rent arrears can be included as part of a Chapter 13 filing, because this type of bankruptcy petition involves the repayment of creditors, but over a timeframe of approximately 36 months. As of 2005 you cannot use a Chapter 7 bankruptcy filing to prevent your eviction because you owe your landlord several months of rent. It’s important to note here that when filing for Chapter 13 bankruptcy you do need to have proof of regular income, and also proof of disposable income at the end of each month. Otherwise you lack the financial means to repay any of your creditors, including your landlord.
Regardless of your reasons for owing rent, your landlord can file a complaint with the New Jersey Superior Court to take possession of the property. The tenant will receive a court notice after that, and this is the point where any tenant can appeal their case.
Filing Bankruptcy Before Court Notice
Your Chapter 13 filing must include an agreement that the tenant (you) will clear all rent arrears within a “reasonable” period of time. A reasonable amount of time can be anywhere from 12 to 18 months. Chapter 13 normally allows you 3 years 5 years to repay your debt.
Your arrears are paid to a court-appointed bankruptcy trustee, who then pays the landlord. You are also obliged to keep up your monthly rent payments to your landlord, in addition to repaying the money you already owe them.
If you can satisfy the above conditions then your bankruptcy filing will allow you to remain living in your current home.
Property Endangerment
If a tenant is proven to be using illegal drugs on the property or acting in such a way that would endanger the landlord’s property, they can then ask the court to remove the stay of eviction you secured during your bankruptcy filing. The landlord does need to provide verifiable proof that their property was used for the consumption of illegal drugs, or the presence of other dangerous activities – hearsay is not acceptable proof. If, however, you have been using or distributing illegal drugs from a property there’s nothing to stop your landlord from evicting you.