The risk of eviction is one of the biggest fears Ohio residents experience, especially if they have accumulated a lot of debt that they can no longer manage on their own. So, if this is a situation you are facing, you may be wondering if bankruptcy can stop eviction in Ohio.
Do you owe back rent to your landlord and worry about being evicted from your home? If so, check out this article, where we will discuss whether or not bankruptcy can stop eviction and how back rent is handled in Ohio bankruptcy.
How Bankruptcy Affects Evictions
One of the main concerns when you are in a substantial amount of debt is avoiding eviction proceedings, whether you are renting a home or an apartment. And the good news is that bankruptcy can stop an eviction in Ohio and is usually a good option whether you are filing for Chapter 7 or Chapter 13 bankruptcy.
The reason for this is that an automatic stay immediately takes effect once you file for bankruptcy. The automatic stay protects you from creditors and collection efforts, which essentially puts eviction proceedings on hold.
Keep in mind that simply filing for bankruptcy does not provide complete protection from all eviction proceedings. Especially if you have rent debt that has gone unpaid, this usually means that you have breached your lease, which is grounds for an eviction. That is why you should work with a bankruptcy attorney in Ohio who can help you figure out how to move forward without losing your home.
Situations Where Bankruptcy May Not Stop Eviction
Even though bankruptcy can stop an eviction from going through, this isn’t a guarantee. There are situations where even the automatic stay isn’t enough to stop an eviction, including:
- Eviction judgment: There is a significant difference between having an eviction filed vs receiving a completed eviction judgment. If the eviction has been filed by your landlord when you file for bankruptcy, the automatic stay will usually stop the eviction entirely. However, if you only file for bankruptcy after your landlord has received a judgment for eviction, the automatic stay will usually not be enough to stop this.
- Illegal activities: Although not incredibly common, it is possible for eviction proceedings to move forward if it can be proven that there are illegal activities going on. For instance, your landlord may be able to have the automatic stay lifted if they can prove that there is illegal drug use going on or property damage.
- Failure to pay rent: Landlords could also have the automatic stay lifted if they can prove that you have failed to pay ongoing rent and have not complied with your post-petition obligations. An example of this is if you have stopped paying rent after filing for Chapter 7 bankruptcy and have gotten behind again. Or, you have filed for Chapter 13 bankruptcy but haven’t been able to maintain your monthly rent obligations, which are part of your repayment plan.
It’s also worth mentioning that landlords may be able to file a motion for relief from stay with the bankruptcy court if they are suffering financial hardship. For this to actually lift the automatic stay, they would need to be able to prove that the financial hardship is directly linked to their tenant’s non-payment.
Chapter 7 vs. Chapter 13 for Rent Debt
If you have filed for bankruptcy after getting into a substantial amount of rent debt, you will need to know how this type of debt is handled. In most situations, this will depend on the type of bankruptcy you file for.
Back rent is considered to be a dischargeable debt specifically in Chapter 7 bankruptcy, which could result in it being erased altogether. On the other hand, Chapter 13 is a repayment plan type of bankruptcy that will usually add any rent debt to your repayment plan so that you can catch up along with your current monthly rent obligations.
Options for Tenants Facing Eviction
Being evicted from your home is something that nobody wants to experience, especially if you are already in a difficult financial situation. But the good news is that there are several options available to tenants facing eviction, including:
Chapter 13 repayment: If you have a substantial amount of rent debt, you may be able to continue living in your home with a Chapter 13 repayment plan. This allows you to catch up on all of your missed payments while also continuing your current monthly rent obligations.
Negotiating with your landlord: Depending on the circumstances, you may be able to negotiate with your landlord on how to avoid being evicted. This may mean that you need to create a repayment plan directly with them that allows you to slowly catch up on back rent.
Emergency legal protection: In Ohio, there are several options available to those who need emergency assistance when they are facing a possible eviction. Some of these options include applying for rental assistance, reaching out to social service organizations, or speaking with a local housing counselor.
FAQ Section
Can bankruptcy stop an eviction immediately?
Usually, yes. But this will depend entirely on whether or not your landlord has simply filed for eviction or if they have received an actual eviction judgment.
Will back rent be erased in bankruptcy?
Back rent is usually categorized as a dischargeable debt, especially if you are filing for Chapter 7 bankruptcy.
Can I stay in my apartment after filing bankruptcy?
This will depend on whether or not a final eviction judgment was issued and if you are able to pay your ongoing rent obligations.
Does bankruptcy stop future rent obligations?
No. Even if the automatic stay stops eviction proceedings, you will have to maintain all future rent obligations; otherwise, you risk breaching your lease.
Hire a Bankruptcy Attorney in Ohio
If you are facing the risk of eviction, bankruptcy may be a good option depending on the circumstances and your financial goals. Richard P. Arthur, Attorney at Law, has extensive experience handling bankruptcy cases and can help you deal with back rent during bankruptcy in Ohio. To proceed with your case, contact us today at 937-254-3738 for a free consultation.