Can Filing for Bankruptcy Stop an Eviction in Maryland?
Facing eviction can be one of the most stressful experiences for renters, especially when circumstances beyond your control make it difficult to keep up with payments. If you're struggling to make ends meet and are at risk of losing your home in Maryland, you might be wondering if filing for bankruptcy could help you stay in your residence. While bankruptcy offers some powerful protections, it’s essential to understand how it can impact eviction proceedings in Maryland and whether it can halt the eviction process. Here’s what you need to know about how filing for bankruptcy might stop an eviction and how the Law Offices of Nicholas J. Del Pizzo can assist you during this challenging time.
Answering the Question: Can Filing for Bankruptcy Stop an Eviction in Maryland?
What is the Automatic Stay in Bankruptcy?
When you file for bankruptcy—whether it’s Chapter 7 or Chapter 13—an “automatic stay” goes into effect. This automatic stay is a powerful legal provision that prevents creditors from taking further action to collect debts. It immediately stops lawsuits, wage garnishments, and other collection efforts, which includes halting eviction proceedings in many cases.
In Maryland, however, the automatic stay’s power to halt eviction is subject to limitations. If a landlord has already received a judgment for possession before you file for bankruptcy, the automatic stay may not apply. Additionally, if your eviction is based on issues beyond unpaid rent, such as illegal activity on the property, the automatic stay may not protect you. Understanding these limitations is crucial for knowing when and how bankruptcy can assist with an eviction.
How Filing for Bankruptcy Can (and Can’t) Stop an Eviction in Maryland
While bankruptcy can offer some relief from eviction, there are specific conditions and limitations that Maryland renters should be aware of. Here’s how bankruptcy may help you stay in your rental home:
- Timing of the Bankruptcy Filing: If you file for bankruptcy before your landlord has received a judgment for possession, the automatic stay may temporarily halt the eviction process. This could give you additional time to resolve outstanding rent payments or negotiate with your landlord. However, once a judgment for possession is entered, the landlord generally has the right to proceed with eviction, and the automatic stay may not prevent it.
- Chapter 7 vs. Chapter 13 Bankruptcy: In a Chapter 7 bankruptcy, assets are liquidated to pay off debts, and the bankruptcy process typically takes a few months. However, Chapter 13 bankruptcy allows you to restructure your debts and make repayment over three to five years. This may give you the opportunity to catch up on missed rent payments over time, potentially satisfying your landlord and halting eviction. In both cases, it’s essential to act quickly and consult with an attorney who can help you determine the best course of action based on your financial situation.
- Landlord’s Motion for Relief from the Automatic Stay: In some cases, landlords may file a motion to lift the automatic stay, particularly if the eviction is based on factors other than unpaid rent. If the court grants the landlord’s motion, they can continue with the eviction despite your bankruptcy filing. Therefore, the automatic stay is not a guaranteed way to stop eviction, but it can buy time in certain situations.
- Handling Ongoing Rent Payments: While bankruptcy may provide temporary relief, it’s important to keep up with future rent payments if you wish to remain in your rental home. Falling behind on rent again after filing for bankruptcy could lead to further eviction proceedings, which may not be halted by a second automatic stay.
Why Contact The Law Offices of Nicholas J. Del Pizzo for Help with Bankruptcy and Eviction
If you’re facing eviction and considering filing for bankruptcy to stay in your home, it’s vital to have an experienced legal team on your side. The Law Offices of Nicholas J. Del Pizzo in Baltimore can provide personalized guidance to help you navigate the complexities of bankruptcy and eviction laws in Maryland. Our firm has helped countless Maryland residents explore bankruptcy as a solution to financial challenges, and we’re here to evaluate your options for protecting your housing stability.
With decades of experience in bankruptcy law, attorney Nicholas J. Del Pizzo understands the urgency and emotional toll that eviction can bring. Our team is committed to supporting you throughout the bankruptcy process, ensuring you understand your rights and potential outcomes. Whether it’s determining if the automatic stay can help in your situation or exploring alternatives like Chapter 13’s repayment plan, we’re here to advocate for your financial security and peace of mind.
Conclusion
While filing for bankruptcy may stop eviction temporarily in certain situations, the impact of bankruptcy on eviction proceedings depends on many factors, including the timing of the filing and the nature of your rental agreement. Don’t face the eviction process alone—contact the Law Offices of Nicholas J. Del Pizzo today for a free consultation. Let us help you understand your options, protect your home, and regain control of your financial future.