Yes, you may be able to stay in your apartment if you file for bankruptcy. In both Chapter 7 and Chapter 13, the automatic stay temporarily stops eviction proceedings. However, staying in your apartment depends on your ability to catch up on rent or include it in a repayment plan.
In Chapter 7, if you are behind on rent, you’ll typically need to get current within 30 days of filing, or your landlord can request to lift the automatic stay and proceed with eviction.
In Chapter 13, past-due rent can be included in a repayment plan, allowing you to stay in your apartment as long as you keep up with rent and repayment obligations.
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FAQs About Apartment Rentals and Bankruptcy
Will I be evicted if I file for bankruptcy?
Filing for bankruptcy can temporarily halt an eviction through the automatic stay, but you’ll need to address your rent issues to avoid eviction in the long term.
Can I stay in my apartment during Chapter 7 bankruptcy?
Yes, but you’ll need to bring your rent current within 30 days of filing. If you can’t, your landlord can request that the court lift the automatic stay and proceed with eviction.
Can I Keep My Apartment If I File Chapter 13 Bankruptcy?
Yes, Chapter 13 allows you to keep your apartment as long as you stay current on your rent and follow the repayment plan approved by the court. Past-due rent can be included in your plan, helping you catch up over time.
How does Chapter 13 bankruptcy help renters?
Chapter 13 allows you to include past-due rent in a repayment plan spread over 3-5 years, which can help you avoid eviction and stay in your apartment as long as you stay current on rent.
What Happens If I Reject My Lease During Bankruptcy?
Rejecting your lease means you're terminating the rental agreement and won’t be responsible for future rent payments. However, you will still need to pay any unpaid rent up to the date you reject the lease.
Can I Break My Lease During Bankruptcy?
Yes, bankruptcy allows you to break your lease without facing penalties for future rent payments. This can be a useful option if you're moving to a more affordable apartment. However, any unpaid rent before rejecting the lease must still be paid.
Do Bankruptcies Affect Getting an Apartment?
Yes, bankruptcy can make it harder to rent a new apartment, particularly within the first two years after filing. Many landlords conduct background checks that will show your bankruptcy. Offering a larger security deposit or having a co-signer can improve your chances of getting approved.
