Creditors will act quickly if they feel that may be going for bankruptcy. This is often the case with landlords. If they bring the eviction notice to court and it is ruled on then your Dallas bankruptcy is not going to have much of an effect on stopping it. It is extremely important to get your bankruptcy filed before any legal action has been taken against you regarding your home whether it is eviction or foreclosure.
It is just as important that you retain an experienced bankruptcy attorney to assist you with this. There are Federal rules regarding bankruptcy, but there are also may be State rules which differ from State to State. In many cases a bankruptcy will evoke what is called an “automatic stay”. This means that any eviction notices that are still in motion must come to a halt. There are exceptions to this.
In cases where it can be shown that the tenant has caused damage to the dwellings or there are illegal activities taking place within the residence the landlord can file documentation supporting this with the bankruptcy court. If this were to happen you would be notified. You will have 15 days to respond to these allegations, and if you ignore them or don’t prove them wrong the landlord can continue with the eviction procedures.
In situations where there is a lease, it automatically becomes part of the bankruptcy estate. This holds true whether the rental payments are current or not. The trustee has the power under a Chapter 7 bankruptcy to decide whether the individual filing for bankruptcy can continue with the lease agreement. This decision must be made within a 60 day time frame. Even if the lease is in good standing the landlord now has the right to ask for proof that the individual will be able to keep up with the rental payments. If the landlord is not satisfied that this will be the case he can ask the bankruptcy court to cancel the lease agreement. In a Chapter 13 bankruptcy the landlord has to decide on the keeping or cancelling of the lease before the repayment plan is put into place.