The idea of filing for bankruptcy is scary, mostly because there are so many questions. You may be wondering what of your property you get to keep, if you will have to turn off your cable or cell phone, what to do about past due utility bills, and whether your landlord can evict you during the case. These are good questions, and we believe it is important that you fully understand the benefits of bankruptcy before you decide to file as well as learn what you are not able to do during your case.
For instance, a common misconception about bankruptcy is that you get to keep your property without making the payments. This is simply not the case. If you want to hang on to your home or car, you will be required to make the payments due under the loan obligation. Whether you decide to make those payments by entering a reaffirmation agreement or by making voluntary payments is up to you, and we can help you decide what works best for your situation. If you are renting your home or apartment, you are likely wondering if you will be evicted for not paying the rent during your bankruptcy. There are certain acts that are prohibited upon the filing of a bankruptcy, and these include:
- A creditor’s effort to collect the debt.
- A continuing wage garnishment.
- A lawsuit for repossession of your car or other personal property, or an action to foreclose your mortgage.
In the case of a rental, your landlord will first have to seek relief in the bankruptcy court in order to initiate an eviction action. You will be given notice of this request, and this is a good time to take the opportunity to try and work out payment arrangements if you wish to remain in the property. If you have already made the decision to vacate, you can advise the landlord of that decision and hopefully avoid a case being filed to force you out of the unit. For more information about bankruptcy and how your day to day living arrangements are impacted, call our office.
For more information about bankruptcy and evictions, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.