QUESTION
If I file for chapter 13, will it keep a roof over my head if I can't pay rent?
Asked on Jun 22nd, 2015 on Bankruptcy - Michigan
More details to this question:
I just lost my job and I am not able to make my rent payments of $2,000. I am considering filing chapter 13. What would that do for me, in terms of keep a roof over my head?
9 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Chapter 13 can't keep you in a rental residence unless you can make the monthly payments. You can either get a new job, find a cheaper place or pick up a girlfriend, boyfriend, swinging couple (hey, I don't judge) who will provide you with shelter faster than the eviction process. In any case, while you're unemployed is usually a bad time to file bankruptcy. You have little or no income, so you'll just start piling up debt until you get a new job. So it usually makes sense to find a new job, start paying your expenses and file bankruptcy to get a fresh start from your period of unemployment.
Answered on Jun 25th, 2015 at 8:44 PM
Chapter 13 does not allow someone to avoid paying for their ongoing living expenses. Chapter 13 is a fairly costly process to restructure & repay debt with specific goals in mind. For example, to stay out of jail by repaying child support arrearages, to prevent a foreclosure by repaying the delinquent amounts, to pay back substantial tax debt. When you put together the cost of legal fees, trustee commissions, etc, a Chapter 13 can easily cost $5,000 or more over a period of time. With no income source, a Chapter 13 is likely to fail. Why haven?t you considered Chapter 7 to eliminate debts instead?
Answered on Jun 24th, 2015 at 11:39 AM
Filing BK does not help with this issue.
Answered on Jun 24th, 2015 at 11:36 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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You can only file Ch. 13 if you have regular income. So do your best to find employment soon. Of course you already know that. A ch. 13 may not do much to keep you in your home. If it is rented, and you can make arrangements with the landlord to catch up on rent and continue current payments, you won't have a problem. If you cannot work something out, the landlord can usually oust you after 60 days from the date of filing. (Or somewhat longer if you move for an extension before the end of 60 days but you must show a good reason for the extension.) Consult an experienced bankruptcy lawyer in your area. It's almost always worth the investment.
Answered on Jun 24th, 2015 at 10:01 AM
Not much, you are still required to pay for your housing.
Answered on Jun 24th, 2015 at 10:01 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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This cannot be answered without a one on one interview.
Answered on Jun 24th, 2015 at 2:08 AM
Nothing I can get the past rent gone and he you out of your contract but you must pay future rent if you need a place to stay
Answered on Jun 24th, 2015 at 2:07 AM
Chapter 13 requires a steady source of income from which you make monthly payments to the bankruptcy trustee. Therefore, you would not qualify if you have no income. A bankruptcy filing under either chapter 7 or chapter 13 would impose an automatic stay on all creditors, including your landlord, so it would prevent them from evicting you for maybe a month until they got relief from the stay so they could evict you later. You have to find a way to pay your rent sooner or later or else it is inevitable that you will get evicted. You should tell your landlord you lost your job and see if s/he will work with you until you get back on your feet or until you find a more affordable living situation. If the landlord threatens eviction, then you can file a bankruptcy as a defensive maneuver but just remember it is only a temporary postponement of the inevitable.
Answered on Jun 24th, 2015 at 2:06 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Not a lot, landlords and secured creditors need to be paid. See an attorney immediately.
Answered on Jun 24th, 2015 at 2:04 AM