Frank lost his job last year. Since then, he’s been using unemployment checks and the occasional temporary job to pay the bills. But those revenue streams have run dry, Frank is already a month behind on his rent, and the first of next month is coming up fast.
Even though recent changes in bankruptcy law have been decisively anti-tenant, Chapter 7 bankruptcy may still be a good option for Frank.
Section 362 of the Bankruptcy Code controls eviction actions vis a vis bankruptcy. Since the landlord has not obtained an eviction order, the automatic stay applies. The landlord cannot even continue his threatening phone calls to the tenant.
The judge might very well grant a motion to lift the stay, especially if Frank is using illegal drugs or endangering the property. But you can count on the aggressive lawyers at Henley and Henley to use all available tools to protect your rights.
If, on the other hand, the landlord has already obtained an eviction order, the automatic stay does not apply. However, all hope is not lost; a temporary stay may still be enforced if the tenant deposits all past due rent with the bankruptcy court.
Click here for more information on other bankruptcy topics, and then call the law office of Henley and Henley for your free consultation.