Massachusetts Bankruptcy Law: How to Stop Eviction

Massachusetts bankruptcy law offers a powerful option for individuals facing eviction, providing a legal mechanism to halt the process and give tenants a chance to reorganize their finances. When rental payments fall behind, landlords can initiate eviction proceedings, but filing for bankruptcy can create an automatic stay that pauses these actions.

When a tenant files for bankruptcy under Chapter 7 or Chapter 13, the bankruptcy court issues an automatic stay that prevents creditors, including landlords, from taking any further action to collect debts or evict tenants. This means that tenants can remain in their homes while they address their financial issues. However, it is crucial to understand the specific conditions and procedures involved in using bankruptcy as a tool to stop eviction.

In Massachusetts, tenants facing eviction should consider the following:

Understanding the Types of Bankruptcy

Bankruptcy comes in two primary forms relevant to tenants: Chapter 7 and Chapter 13. Chapter 7 bankruptcy allows for a quick discharge of unsecured debts, while Chapter 13 involves a repayment plan over three to five years. Choosing the right type of bankruptcy depends on individual financial circumstances and long-term goals.

Filing for Bankruptcy

To initiate bankruptcy proceedings and stop eviction, a tenant must file a petition with the bankruptcy court. This petition includes various documents detailing assets, liabilities, income, and expenses. It is advisable for tenants to seek assistance from a bankruptcy attorney who can help navigate the complexities of the process and ensure all paperwork is correctly completed.

Automatic Stay and its Implications

Upon filing for bankruptcy, the automatic stay immediately protects the tenant from eviction and other collection actions. This stay is effective as soon as the bankruptcy petition is filed, and it prohibits landlords from taking any steps to remove tenants from their premises without permission from the bankruptcy court.

However, there are exceptions to the automatic stay. If a tenant received an eviction notice based on violations of lease terms (such as illegal activity) or if the landlord obtained a judgment before the bankruptcy filing, the automatic stay might not apply. Therefore, understanding the nuances of the law is essential.

Reinstating Tenancy

In Chapter 13 bankruptcy, tenants can propose a repayment plan to catch up on overdue rent payments, allowing them to keep their rental unit while satisfying their debts over time. This plan must be approved by the bankruptcy court, and it provides a structured way to manage financial obligations while stabilizing housing situations.

Communicating with the Landlord

After filing for bankruptcy, tenants should inform their landlords about the bankruptcy filing. Open communication can sometimes lead to more favorable arrangements. Landlords may be more willing to work with tenants who demonstrate a proactive approach to resolving their financial situation.

Consulting a Bankruptcy Attorney

Given the complexities of Massachusetts bankruptcy law and the potential implications for eviction, consulting a knowledgeable bankruptcy attorney is critical. They can provide guidance tailored to the tenant’s specific situation, ensuring that all legal rights are protected and that the best possible outcome is achieved.

In conclusion, bankruptcy can serve as a lifeline for tenants in Massachusetts facing eviction due to unpaid rent. By understanding the options available and seeking legal assistance, individuals can effectively use bankruptcy law to secure their housing and work toward a more stable financial future.