More people are asking me how bankruptcy can preserve their rights as tenants now that the eviction moratorium set by the State of Maryland and the Federal Government during the pandemic is about to expire. There are a variety of ways bankruptcy can be an economical choice to keep you in your house or apartment while you figure out a workable plan to either pay your landlord in installments over time or leave the property without going through the stress of an eviction. In this extremely technical field of law, having a knowledgeable bankruptcy attorney on your side is crucial.
When bankruptcy is filed, an automatic stay is put in place that, in some cases, affects tenants for at least 30 days after the bankruptcy is filed. It is crucial to remember that bankruptcy court is It is crucial to remember that bankruptcy court is an equity court, which means that the Court must act in a just and equitable manner. Sometimes, an adept bankruptcy attorney Maryland like Harris Ammerman can assist you in persuading a Judge as to why Among other procedural criteria, you have the legal right to cure the back rent.
Depending on whether eviction proceedings have started and how far along they are, tenants have different rights. If the eviction proceedings have progressed to the point where the Sheriff is scheduled to visit your home to evict you, filing for bankruptcy gives you a 30-day reprieve on the eviction if you are able to pay a month’s rent at the time of filing your bankruptcy petition and meet the other requirements listed above.
Without a doubt, if you were about to be evicted, another choice would be to file for bankruptcy in order to “discharge” (i.e., release) the debt and hand over the property to someone else.