A Chapter 13 bankruptcy allows a debtor (the person who files the case) to pay past due debts through a three- to five-year repayment plan. However, if a tenant owes you back rent and files a Chapter 13 case, you won’t have to wait years to get your money.

How does bankruptcy affect my ability to rent an apartment?

Understand that the longer it has been since your bankruptcy, the less impact the bankruptcy will have when a potential landlord evaluates your rental fitness—as long as your credit has been good since you filed, of course. In fact, if everything else looks good, most landlords won’t be concerned once the bankruptcy is over two years old.

What happens to my lease if I file bankruptcy?

If you’re behind on rent and don’t want to bring the lease current, the landlord has to ask the court to “lift” the automatic stay for them so they can move forward with an eviction proceeding. The provisions of the Bankruptcy Code protect you from any collection actions for back rent as of the date your bankruptcy case is filed.

Can a landlord evict a tenant after filing for bankruptcy?

The law states that landlords are not allowed to terminate the lease or evict tenants after they’ve filed for bankruptcy. However, landlords can seek compensation for automatic stay but the relief won’t be immediate unless the tenants did not satisfy their lease obligations.

Can you rent a home or apartment after Chapter 13?

For many people who file for a Chapter 13 bankruptcy, or are considering doing so, they fear their ability (or inability) to rent a home or apartment again. Are you able to rent after a Chapter 13 bankruptcy? Well, sure. (Chapter 13 bankruptcy is a very powerful tool.

Can a house be sold in Chapter 13 bankruptcy?

In an attempt to overcome this issue, some debtors (the person filing the bankruptcy) have filed Chapter 13 plans containing a special provision that allows property ownership to transfer to the lender automatically when the bankruptcy court confirms the plan.

How does Chapter 13 bankruptcy affect mortgages and foreclosure?

If you stay current on your mortgage payments and make up the arrears through your Chapter 13 plan—and you can afford to pay for any nonexempt equity—the lender cannot foreclose. You’ll be able to keep your home.