Bankruptcy and Eviction in NYC: Navigating the Process
Bankruptcy and eviction in NYC can be complex processes, often leaving individuals feeling overwhelmed and uncertain about their financial future. This blog post aims to provide an in-depth understanding of these legal proceedings, as well as the potential benefits that may arise from filing for bankruptcy.
In the following sections, we will delve into Chapter 13 bankruptcy and its unique advantages for those facing eviction. We will discuss the concept of relief from automatic stay – a crucial aspect to comprehend when navigating through a bankruptcy case.
Gaining an understanding of Chapter 13 bankruptcy and the concept of automatic stay relief will give you a better foundation to make good decisions regarding your finances while managing eviction in NYC.
Understanding Bankruptcy and Eviction in NYC
Navigating bankruptcy and eviction in NYC can be an intimidating experience. It’s important to understand the differences between Chapter 7 and 13 bankruptcy, how they can help prevent eviction, and what landlords can do to get relief from the automatic stay.
Chapter 7 bankruptcy is commonly called “liquidation” since in some circumstances they can sell your assets to pay off a portion of your debt. It stops an eviction proceeding that has already begun and protects against future ones unless the landlord has gotten a warrant for eviction or a judgment of possession.
Chapter 13 bankruptcy and chapter 7 both provide an automatic stay, preventing creditors from seeking repayment of any debts until we completed the case. This protects most eviction proceedings. Debtors should plan with their landlord outside of court proceedings to keep their residence if they intend to petition under Chapter 7.
An experienced consumer attorney who specializes in Chapter 7 and 13 bankruptcies can help if you are at risk of foreclosure or eviction because of financial hardship. They will provide legal representation during court proceedings and guide you through each step along the way so that you can make informed decisions about your options before making any final commitments related to your case or estate assets going forward into 2023.
Navigating the complexities of bankruptcy and eviction in NYC can be challenging, but with a knowledgeable legal professional on your side, you can safeguard your rights. Now let’s explore some special benefits from Chapter 13 bankruptcy that may provide relief for those facing eviction or foreclosure.
Special benefits from Chapter 13
Chapter 13 bankruptcy provides many benefits to those facing eviction or foreclosure. The most notable benefit is the automatic stay, which immediately stops all collection efforts by creditors and landlords. This gives debtors time to reorganize their finances and get caught up on missed payments.
In addition, Chapter 13 allows debtors to catch up on past due rent over a three-to-five-year period without interest or late fees accruing during that time frame. Rent payments going forward must be paid directly to the landlord while the bankruptcy case is being processed. Tenants may remain in their dwellings so long as they abide by the rental obligations post-filing for bankruptcy.
Finally, Chapter 7 and chapter 13 filers have the option of surrendering a lease without having to pay it off in full. This allows them to move on from an unaffordable rental agreement and begin anew elsewhere without owing money for back rent or damages caused by nonpayment of rent prior to filing for bankruptcy protection.
Special benefits from Chapter 13 include the ability to pay off debts over time and keep certain assets that may get taken in other forms of bankruptcy. The next heading, Relief from Automatic Stay, will discuss how filing for Chapter 13 can help protect you against creditors seeking to repossess or foreclose on your property.
Relief from Automatic Stay
In eviction, filing for bankruptcy can provide temporary relief. In a chapter 13 or chapter 7 case, the Automatic Stay prevents your landlord from taking any action against you without permission from the court. This means they cannot evict you or take back your apartment until the court has decided on their motion. Getting court permission for eviction or other action can take a while, usually at least 15 days before a judge can hear their motion. It’s important to note that landlords rarely file these motions in chapter 7 cases. An experienced consumer bankruptcy lawyer can provide assurance that your rights are protected and eviction proceedings will stop immediately.
Conclusion
By filing for either Chapter 7 or 13 bankruptcy protection, it is possible to protect yourself from eviction and foreclosure proceedings. The automatic stay that comes with these filings can provide much needed relief while you work out your financial situation – although landlords may still seek relief from this stay depending on the specifics of your case.
Take control of your financial future by seeking legal advice from the Law Office of William Waldner. We focus in consumer bankruptcy providing comprehensive solutions to help you regain stability.