Can Bankruptcy Stop an Eviction?
The answer depends on the status of your eviction case at the time you file for bankruptcy.
1. If the landlord has not yet obtained a judgment:
Filing for bankruptcy before your landlord obtains a court judgment will likely pause the eviction process. The automatic stay will take effect, making your landlord stop further legal action. You’ll still need to resolve unpaid rent—through negotiation or a repayment plan— but the stay can provide time to get organized.
2. If the landlord already holds a judgment for possession:
The situation becomes more complicated if the court has already entered a judgment of possession before your bankruptcy filing. In this case, the automatic stay may not prevent the eviction from moving forward. In some cases, paying past-due rent may let you delay or stop the eviction.
In either case, timing is important. Filing for bankruptcy early in the eviction process increases the likelihood of protection under the automatic stay.
How It Works in Practice
Consider this scenario: You are behind on rent and receive a notice that your landlord has initiated eviction proceedings. If you file a bankruptcy petition before the eviction court date, the automatic stay takes immediate effect. This prevents your landlord from continuing the eviction at that time.
The stay gives you the option to:
- Negotiate a possible repayment agreement with the landlord, or
- File for Chapter 13 bankruptcy, which allows for repayment of past-due rent over a period of three to five years.
The automatic stay can delay eviction long enough for you to make progress toward resolving the debt or exploring other living arrangements. However, the protections only remain in place as long as your bankruptcy case is active and in good standing.
What If the Landlord Challenges the Stay?
Landlords have the right to request relief from the automatic stay by filing a motion in bankruptcy court. This motion asks the court for permission to resume eviction proceedings despite the bankruptcy filing.
If the court grants this motion, the stay is lifted, and the eviction may continue.Courts usually evaluate if the debtor is making a good-faith effort to resolve the debt or adhere to a repayment plan. If you are following the terms of your bankruptcy filing—such as making required payments under a Chapter 13 plan—the court may deny your landlord’s request for relief.
Also keep in mind that automatic stay does not protect tenants in all situations. If your landlord alleges drug use or property damage, the stay may not apply, depending on the facts presented.
Additional Considerations: Taxes and Other Claims
Eviction-related legal issues are sometimes accompanied by other financial challenges, such as unpaid ad Valorem property taxes. These taxes, based on property value, can complicate matters further—especially if you are facing both foreclosure and eviction.
In some cases, the automatic stay can temporarily protect against actions related to these taxes. However, this protection is not indefinite. The court may still determine tax liability as part of the bankruptcy proceeding. If other creditors raise collateral claims connected to the same property, the scope and duration of the stay could be limited.
Creditors may also argue for “adequate protection,” seeking assurance they will not be financially disadvantaged during the bankruptcy process. These motions can result in the court lifting the stay earlier than anticipated.
