Can I Lose My NYCHA Or Section 8 Apartment If I File For Bankruptcy?
Deciding to file for bankruptcy is a big decision. Financially distressed people usually come to understand that bankruptcy is the only way to overcome their financial troubles, but before they file they need to know what will happen to their home in a bankruptcy. For our client’s living in NYCHA or Section 8 housing programs it is easy to think the government will punish them for filing bankruptcy by forcing them out of their home. This is not the case.
Bankruptcy laws exist to protect citizens, and to guarantee their chance at a fresh financial start. We do not have debtors’ prisons in America nor do we believe you should be forever enslaved to your overwhelming debt. We believe in second chances, and bankruptcy courts do not put people on the street when granting them a fresh start. It’s in everyone’s best interest to see you succeed this time around, and to give you the best reasonable chance at doing so. In short, there are many ways to protect your home in a bankruptcy including homes in NYCHA and Section 8 programs, and our clients in New York so far have always keep their homes and cars in bankruptcy, unless they wanted to surrender their home (written 9/24/13).
Technically, almost any lease can be sold by a trustee in a bankruptcy case since it is part of your overall “estate”, but the NYCHA and Section 8 programs are not in the business of seeking market value for their apartments in the first place. Most bankruptcy trustees in New York also see this practice as unconscionable and are not that eager to jump into bed with a greedy landlord just to put you on the street when they are supposed to be giving you a fresh start. If you are behind or are having trouble paying your rent we will need to take steps to address this to keep you in your apartment, but remember that after your bankruptcy all your bad debt and toxic credit card bills will be wiped out forever and you will be in a much better position make your rent payments.
If you are considering bankruptcy relief and live in New York City please give the Law offices of William Waldner a call at 212-244-2882 to arrange a free bankruptcy consultation today. We will help you stay in your NYCHA or Section 8 apartment, while ridding you of your toxic debt and putting you on the fast track to financial recovery.