In the last year or so it has seemed like a tidal wave of evictions has washed through the Phoenix area. If you are in the eviction process it is critical that you contact Phoenix Fresh Start Bankruptcy Attorneys to investigate how Chapter 13 Bankruptcy may save your tenancy.
In so many ways, the current eviction crisis is pretty similar to the mortgage default crisis that started off a little over ten years ago. While it is not almost common knowledge that Chapter 13 Bankruptcy can be an effective, often life-saving tool for dealing with mortgage default, its effectiveness for dealing with eviction issues is not as widely known.
Chapter 13 Bankruptcy is not going to lower the amount of your monthly rent anymore than it is going to lower your mortgage payments. Of course the fact that it eliminates or reduces all your other debts makes paying your rent more affordable. Moreover, with respect to tenancy, filing a Chapter 13 bankruptcy imposes an automatic stay, halting an eviction until the executes on a write of eviction.
The length of this protection and your obligations are spelled out in Section 362(l) of the bankruptcy code. Keeping the automatic stay in place to bar evictions requires the filing of a certification detailing the status of the residential rental agreement at the time of filing. More important, the tenant must deposit any rent that would become due during the 30-day period with the clerk of the bankruptcy court. Because Chapter 13 plans normally require little in the way of fees prior to filing, this can be an extremely cost-effective way for a tenant to remain in his or her home.
If a judgement for possession has already entered prior to filing, the tenant has only thirty days to cure the entire default or the stay will terminate, permitting the eviction process to continue. If, however, judgment had not been entered in the eviction proceeding before filing the Chapter 13 bankruptcy, the tenant need only make the ongoing monthly payment within thirty days, and they would probably have at least a six-month window for curing any default. This may not be the case complicated if the lease is month-to-month.
Again if you facing eviction in the Phoenix area, Chapter 13 bankruptcy is often an effective tool for stopping the process and giving you a tool for catching up. When you add to that its benefits of eliminating or lowering other debts including taxes and car loans, Chapter 13 Bankruptcy may be an even bigger winner than you imagined. Set an appointment at Phoenix Fresh Start Bankruptcy to get back in control of your rental agreement.