New Jersey Bankruptcy Attorneys
Avoiding Eviction in Bankruptcy
The following information pertains to eviction of an individual in a residence that is not a business. Only a Chapter 13 bankruptcy case will prevent an eviction, if the debtor is in default. A Chapter 7 will not protect an individual from eviction. The Bankruptcy Code separates the requirements in a Chapter 13 with regard to before and after a landlord obtains a judgment against the debtor.
A bankruptcy filing will only protect an individual if the eviction is due to failure to pay rent. Filing for Chapter 13 bankruptcy in New Jersey will not protect an individual that is in the process of being evicted due to any other lease violations. The following information does not include an explanation with regard to the implications of the natural expiration or termination of the lease at any time.
What is a Judgment?
In New Jersey, if an individual is in default with rent, a landlord may file with the New Jersey Superior Court a complaint for possession of the property. At the time of the filing of the eviction complaint the tenant is sent a Court notice. The tenant has a right to appear in Court and present their defense. If the tenant loses, the Court will enter a judgment in favor of the landlord and against the tenant. In the event that the tenant fails to respond to the complaint and does not appear in court, the landlord will also obtain a judgment in their favor.
Filing a Chapter 13 Prior to Entry of Judgment of Possession
The following information relates to an individual that filed for chapter 13 bankruptcy protection prior to the entry of the judgment. As part of a chapter 13 case, the debtor must file a bankruptcy plan reflecting that the debtor is required to cure all pre filing rental arrears, promptly. New Jersey bankruptcy judge's determination as to the number of months that are deemed, promptly, may vary. However, typically, promptly means 12 to 18 months after the bankruptcy filing. The arrears are paid to the trustee on a monthly basis, by dividing the total arrears by the number of months of the bankruptcy plan. The trustee disburses the monthly payments to the landlord. In addition to making payments to the trustee, the debtor must also pay the regular monthly rental payments, to the landlord, on a timely basis. If the debtor makes timely payments on the monthly rent and Bankruptcy Plan, the debtor may proceed to reside in the unit.
Filing a Chapter 13 Bankruptcy Case After The Judgment for Possession.
If a landlord has entered a judgment against the tenant, the tenant may possibly avoid eviction in a chapter 13, with great difficulty. At the time of the filing, the debtor must perform the following: include on the petition that the landlord obtained a judgment for possession; notify the landlord of his right to cure the arrears; deposit with the court the total rent due for the period within the thirty days after the bankruptcy filing; pay to the landlord the total arrears amount within the thirty days after the filing. The landlord may contest the matter and schedule a hearing.
Contact a Chapter 13 Bankruptcy Attorney
If you are facing eviction and considering filing for bankruptcy, you may be able to continue living in your residence. You should contact an experienced New Jersey bankrtuptcy attorney, to ensure that you are aware of all of your options and compliant with the NJ bankruptcy code. If you have any other questions or concerns about your bankruptcy filing, contact The Law Offices of Robert Manchel for a free consultation.