Since mid-2020, an eviction moratorium has been in place to assist renters due to the ongoing Covid-19 pandemic. This has been a great lifesaver for renters, but the moratorium won’t last forever and your obligation to pay rent will continue when the moratorium ends.
Here in Minnesota, there’s assistance for back rent. But, if you don’t qualify for assistance, don’t take advantage of it within the appropriated time, or if there are fees and penalties that exist even after the assistance has been applied, then chapter 7 or chapter 13 bankruptcy may be an option.
Filing Bankruptcy to Avoid Eviction in Minnesota
Filing a bankruptcy to avoid an eviction is temporary and may buy some additional time before being forced to leave your rental. However, filing a bankruptcy will relinquish any liability you may owe to your landlord. This does not include any co-renters or co-signers on your rental, so if you decide to file, make sure you inform any co-renters or co-signers, since your filing will have an impact on them.
Of course, timing is very important and could impact when you have to leave your rental. If your landlord obtains an eviction judgment, and then you file for bankruptcy, your landlord can disregard the automatic stay and continue to pursue an eviction. If you recall, the automatic stay is a powerful tool of the bankruptcy code that bars your creditors from pursuing any action during your bankruptcy and one of the reasons why timing is important here.
If there’s back rent, penalties and fees that are still owed, and then you file for bankruptcy, the automatic stay will prevent your landlord from evicting you. However, your landlord may still ask the bankruptcy court to lift the automatic stay to pursue the eviction.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
So, if you are currently in a situation where you owe money to your landlord and thinking of filing for bankruptcy, and or if you have questions or are ready to get your life back, reach out to Minnesota’s nicest bankruptcy law firm by going to www.lifebacklaw.com. You won’t regret it!