Blog > 2021 > November > Your Options for Evictions in LA
Before the pandemic, you had to pay your rent or face eviction. During the pandemic, the federal government put a hold on evictions. However, the mandate on removals has now been lifted, which means that you must now pay rent on time. However, you do have options.
If you are facing eviction, contact SM Law Group for a free consultation.
When you file for bankruptcy, the process implements an automatic stay. The stay stops all court cases and collections against you, including foreclosures and evictions. The stay remains in place for the duration of the bankruptcy. It gives you a chance to catch up on rent or mortgage arrearages.
Bankruptcy law allows you to file two types of bankruptcy: Chapter 13 or Chapter 7. Chapter 13 helps you reorganize your finances so that you can catch up on past-due bills.
If you own a home, Chapter 13 is the better option. You usually end up paying some of each creditor you owe. During the Chapter 13 process, you file a Chapter 13 repayment plan with the trustee. You make monthly payments to the trustee, who then pays your creditors.
You must pay all of your arrearages on a home you own and make monthly payments on time. Certain creditors are paid first. If you have enough to pay others, such as credit cards and medical bills, they will get a portion of the outstanding balance paid. It takes 5 to 7 years to resolve a Chapter 13, and you must have the income to qualify.
Chapter 7 is liquidation. You can still keep some of your personal belongings if you file Chapter 7. Often, Chapter 7 is better for renters and those who have very little or negative equity in their homes. The Chapter 7 process could take anywhere from a few to several months. However, you do not pay the creditors you owe with cash. The trustee takes most of your assets and sells them to pay your creditors.
The automatic stay ends when the bankruptcy court discharges your bankruptcy. If you choose to remain in the rental, you must have caught up on rent arrearages during the pendency of the bankruptcy. You must also have paid each month’s rent on time during the pendency of the bankruptcy. If you filed Chapter 13, the arrearages are part of the plan you filed.
If you file Chapter 7, you must be able to come up with the arrearages or make an arrangement with your landlord to pay the arrearages. Once the bankruptcy court discharges the Chapter 7 bankruptcy, the stay lifts, and the landlord can continue eviction.
If you are facing eviction and would like to stay in your rental, contact SM Law Group today for a free consultation to discuss your options.
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