Tuesday, December 3, 2013

Eviction and Bankruptcy, Part 1

If a person in Bucks County files for bankruptcy and they are facing an eviction, they must first determine in if the lessor (i.e. landlord) has obtained a judgment of possession against the debtor prior to the filing of the bankruptcy case.

If a judgment has occurred, then the automatic stay does not stay/stop the continuation of an eviction or similar action for nonpayment of rent.  See 11 U.S.C. 362(b)(22).

BUT!  There are potential fixes.  In our next blog post, we will discuss potential strategies.

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