The Illinois rental property owners association recently came out in support of a lawsuit filed by a group of property owners challenging the Governor’s authority to deny housing providers access to the courts. Time may be running out of the moratorium on evictions providing tenants needed leeway during the economic shutdown as well as other programs and policies put in place to help Americans out in the face of Covid-19.
During the early weeks of the pandemic, businesses and local, state, and federal government acted to help people across the country by enacting moratoriums on evictions, restructuring loans, suspending student loan payments and issuing stimulus checks and more. But as the economy shows signs of reopening, landlords and creditors will once again demand payments and some Americans are just not going to be able to catch up. For those who continue to struggle with a difficult financial situation in the wake of the pandemic, bankruptcy protection can be a good strategy to deal with evictions, home foreclosures, car repossession, and creditor harassment until they can catch up.
Bankruptcy and Evictions
If a landlord decides to evict a tenant, the occupant will receive written notice listing the reasons and a time frame to comply with the notice: “pay the rent by such and such a date or move out”. Bankruptcy protection can help a tenant stop or stay an eviction proceeding at least temporarily, which may provide the needed time to catch up on past due rent or negotiate an agreement with the landlord.
How Does Bankruptcy Prevent Home Foreclosure?
Filing for bankruptcy will put a temporary stop to the bank foreclosing on a home. If a homeowner is able to resume payments, they may be able to stop foreclosure permanently.
Bankruptcy Protection and Car Repossession
If a car owner is at risk of repossession, bankruptcy can halt efforts by creditors to seize or repossess a car. Under a chapter 7, a car may be exempt from bankruptcy up to a certain value or, under a chapter 13 repayment plan, a consumer may be able to restructure their loan payment so that they can retain the car.
Bankruptcy Protection and Credit Card Debt
Unsecured debt such as credit card balances and medical bills can be erased in a chapter 7 bankruptcy to provide eligible consumers a clean slate. For people who have a steady income and have assets they wish to keep, a chapter 13 repayment plan provides options to tackle unsecured debt in an affordable way while holding on to a home or a car.
Contact an Experienced Bankruptcy Lawyer for Help
In light of the economic situation, it is not surprising that more Americans are inquiring about bankruptcy protection for eviction, foreclosures and car repossession, which is every Americans legal right to pursue in order to get back on their feet. If you have questions about the process and want to know if you qualify for a chapter 7, 13 or a chapter 11 business bankruptcy, contact Peoria bankruptcy attorney Charles Covey for help at 309-674-8125.
