Bankruptcy in Louisville: Does It Stop Eviction?

If you have made the difficult decision to find relief from excessive debt by filing for bankruptcy in Louisville, there is a good chance that you may also be behind on your rent and facing eviction. When you file your bankruptcy petition the court will issue an automatic stay. The automatic stay typically prevents creditors from contacting you and attempting to collect debts; however, the stay does not always apply to your landlord. In some circumstances though, bankruptcy can delay eviction, allowing you enough time to bring your rent current. The nuances of using the bankruptcy code to your advantage are quite complex and can best be explained by an experienced Louisville bankruptcy attorney.

Unfortunately, bankruptcy will not change anything if your landlord has obtained a judgment against you for possession of the property. On the other hand, if your landlord has not yet obtained this judgment, bankruptcy can halt the eviction process. This is when the automatic stay does apply to your landlord; however, your landlord has the right to file a motion for relief from the automatic stay. Typically, the judge will grant this motion unless you have a compelling reason why it should not be granted. If the request is granted the eviction process will continue.

Both bankruptcy and eviction are complex legal procedures. When an eviction is part of a bankruptcy in Louisville the combination makes the bankruptcy process even more complicated. If you are facing an eviction and have been contemplating bankruptcy now is the time to consult with an experienced Louisville bankruptcy attorney.