Do Bankruptcies Clear Evictions?

Bankruptcy can stop many types of litigation, including eviction actions. Filing for bankruptcy could help if you’re being evicted from your home. Qualifying for bankruptcy protection means meeting certain criteria and filing the appropriate paperwork in court. However, this must be done before your landlord receives an eviction judgment or judgment of possession.

If you’re interested in how an experienced Chicago bankruptcy attorney can protect you from the eviction process, contact us for a free initial consultation. When you work with a bankruptcy attorney, they can clarify your financial options, identify the appropriate bankruptcy filing for you, and explain if bankruptcies clear evictions.

What is an Eviction Order?

An eviction is the legal process when a landlord terminates your right to occupy a rental property. A landlord may seek an eviction judgment when a tenant breaks the terms of their lease agreement by: 

• Failing to pay rent
• Causing significant property damage
• Engaging in illegal activities on the premises

A pending eviction begins when a landlord serves you with a formal eviction notice. This notice will spell out why you’re being evicted and offer a timeframe when you’re required to move out of the property. If you fail to comply, your landlord can file a lawsuit, known as an unlawful detainer action, to legally regain possession of the property. If this happens to you, a Chicago bankruptcy attorney can offer assistance with eviction proceedings and filing for bankruptcy. 

Filing For Bankruptcy: Chapter 7 vs. Chapter 13

Chapter 7 Bankruptcy: Automatic Stay and Eviction

Chapter 7 bankruptcy initiates an automatic stay, providing immediate protection against most collection activities and can help you avoid eviction. Your landlord will not be legally allowed to proceed with your eviction case. 

However, an automatic stay is temporary and may not apply when cases involve illegal activities, endangerment, and breaches of lease agreements. An automatic stay can provide temporary relief from a landlord’s request to vacate the property but does not guarantee removal of the eviction history or relieve you from paying back rent. 

Chapter 13 Bankruptcy

Chapter 13 bankruptcy provides protections like an automatic stay but the temporary stay merely delays evictions. The length of the automatic stay depends on the jurisdiction’s local laws and the landlord’s response. 

Chapter 13 bankruptcy allows the inclusion of past-due rent in a repayment plan through bankruptcy court. A repayment plan can help with rent defaults over time and potentially resolve previous evictions. However, you must remain current on your rent while making Chapter 13 plan payments. 

A repayment plan allows you and your bankruptcy attorney to go before the court system and make a plan to repay outstanding medical bills and collection efforts from other creditors. However, hiring an eviction process lawyer is beneficial because they can ask to have the automatic stay lifted.

Do Bankruptcies Clear Evictions?

Landlords can still evict you if the following occurs:

• You’re catching up on payments and have outstanding rental debt
• You damaged the unit 
• The court grants a stay relief 
• You’re using illegal drugs or committing illegal activities on the property 

Bankruptcy does not remove past evictions from your credit report or rental history. Even if bankruptcy successfully discharges the debts associated with a previous eviction, that eviction will remain on your credit report. 

Bankruptcy cannot erase an eviction from your public record. An eviction can restrict your chances of finding new housing since most landlords are reluctant to rent to people with an eviction record. Also, any financial judgments related to eviction remain visible and can affect your future rental options. 

Evictions stay on your credit report for up to seven years. Bankruptcy can alleviate some of the financial hardships associated with eviction but filing for bankruptcy may mean that you continue to face challenges securing housing and borrowing money from other creditors.

Steps To Take If Facing Eviction While Considering Bankruptcy

Bankruptcy can’t erase an eviction from your record but doing the following can help relieve some of the financial burdens you face:

• Boost your credit by paying certain debts, avoiding new debts, and ensuring timely payments on all bills. A higher credit score may offset the negative impact of an eviction

• Consider renting private properties because private landlords are more adaptable and may be more willing to work with you despite past evictions

• Offer a larger security deposit to convince prospective landlords that you’re a reliable tenant 

• Strengthen your rental application by providing additional references to previous landlords, employers, or other credible sources to counteract the negative impact of an eviction action on your record

• Wait for the eviction to clear from your record. Once it’s expunged after seven years, it will no longer show up on standard credit checks

• Work with your former landlord to settle the debt and have them sign a statement that becomes official once you’ve paid all your outstanding debts. Present this document to future landlords to prove the issue was resolved

• Disclose your eviction proceedings and history up front and all the steps you’ve taken to rectify the matter

Legal Support and Guidance From DebtPros – Wonais Law in Chicago

At DebtPros, our bankruptcy attorneys are dedicated to helping you get the eviction relief you desire. Struggling with an eviction can be frustrating; however, filing for bankruptcy can give you a new beginning. If you’re being harassed by your landlord and are facing eviction, repossession actions, or wage garnishment, contact a Chicago bankruptcy lawyer at DebtPros to regain control of your financial situation.

Contact DebtPros – Wonais Law for a Consultation

Our experienced bankruptcy attorneys at DebtPros use the following systematic approach to ensure you receive the best possible outcome for your financial future:

• We offer a free initial consultation to learn about your financial situation and discuss your options for debt relief.

• We provide bankruptcy counseling and teach you crucial things about money management and the bankruptcy process. We can enroll you in the legally required classes so all you need to do is attend

• We will file the petition to handle all the paperwork, draft a petition, and submit it to the local bankruptcy court on your behalf. We will present your case so you can start a new chapter of your life, free from debt. 

If you’re facing the difficult decision of bankruptcy and are worried about how it might affect an eviction on your record, it’s essential to get expert legal advice. The experienced team at Wonais Law is here to help you navigate the complexities of bankruptcy and eviction laws. Contact us today for a consultation.