Do Bankruptcies Clear Evictions?
You have an eviction on your credit reports and are wondering if a bankruptcy will clear it off your credit report. A bankruptcy simply does not remove an eviction from your credit report. A bankruptcy can however address any debt owed to the landlord. When you call a bankruptcy attorney in Selma or wherever you live one can usually give you a consultation and go over how this works in more detail.
Any rent owed to a landlord following an eviction is considered unsecured and will be discharged as an unsecured debt in a Chapter 7 and a Chapter 13. If there is debt owed to the landlord based on willful and malicious damage to the rental property, the landlord could file a lawsuit in the bankruptcy court asking to prevent the debt from being discharged.
You may also ask what if I’m currently in an eviction proceeding. The bankruptcy will affect how the eviction proceeds. If the eviction is a pending case, the bankruptcy will stop the eviction process moving forward at least temporarily. However, the landlord can file a motion with the bankruptcy court asking to have the bankruptcy court’s automatic stay lifted and allow the eviction to continue.
If the eviction is still a pending case, you may be able to pay the past due rent as part of your bankruptcy plan in a Chapter 13 plan while still keeping the current rent due. If a judgment for possession has been issued, it is likely that you will have to move out of your rental unless you can pay the past due rent to the court within 30 days. Your Chapter 7 bankruptcy attorney should be able to help you through the process no matter whether you’re trying to stay in the rental unit or get out and discharge the debt.