What Florida Renters Should Know About Filing For Bankruptcy

In this article, you can discover…

• Whether filing for bankruptcy can prevent an eviction.
• What happens to any unpaid rent once you file for Chapter 13 or Chapter 7.
• If you can include unpaid utility bills in your bankruptcy petition.

Will Filing Bankruptcy In Florida Stop An Eviction?

Yes, filing for bankruptcy can temporarily halt an eviction in Florida. Having said that, some landlords will hire a bankruptcy attorney of their own and file a motion to lift the automatic stay, allowing them to go back to requesting rent from you, just as they did before you filed.

But that process does take time, and this pause can give you the space you need to either work something out with your landlord or decide that you truly do need to find another place to live. Generally speaking, you will have three weeks to answer your landlord’s motion, and unless there’s a hearing, a judge will generally grant that motion.

Something to keep in mind: your bankruptcy attorney can not delay the eviction indefinitely or prevent it. You will still have to determine what to do next and make alternative arrangements for where you can live before the eviction happens. This three-week period, however, can give you the breathing room to reach out to people, talk with your landlord, or find alternatives to your current apartment or rented house.

What Happens To Unpaid Rent In A Florida Chapter 7 Or Chapter 13 Bankruptcy Case?

In Chapter 7 bankruptcy, if you have already left your previous apartment, the unpaid rent will be discharged. If you wish to continue staying there, you will have to pay back any unpaid rent. Even if you owed this rent before you petitioned for bankruptcy, the terms of the lease will generally mean your landlord has the right to evict you if you don’t pay.

While I do not file Chapter 13 bankruptcy for people facing eviction, if you were to go this route, you would have to come up with a repayment plan that proves that you can not only make monthly bankruptcy payments, but also continue to pay your rent. Frankly, if you already can not pay your rent, making monthly bankruptcy payments on top of this will prove difficult.

Attorney Alec Solomita is a skilled, respected bankruptcy attorney serving Florida. Since 2007, he’s helped renters just like you navigate bankruptcy, late rent, and other financial concerns with care and planning.

Have questions, or in need of legal guidance? Reach out to Solomita Law, PLLC for an initial consultation today.

How Are Residential Leases Treated Under Chapter 7 Versus Chapter 13 Bankruptcy?

Leases are treated very much like a mortgage under both chapters. You still owe the money, and if you don’t pay, your landlord can evict you. The courts will see your rent as a secured debt.

Can I Include Overdue Utility Bills And Late Fees As A Renter In Bankruptcy?

Yes, but this comes with a caveat. While the energy company will have to respect that you have filed for bankruptcy, they will require a security deposit to be paid, and the amount of the deposit will be higher the more you owe them. The energy company won’t get their full amount back, but they will require a certain amount for you to continue using their services.

Will A Landlord Be Notified If I File For Bankruptcy As A Tenant?

Generally, when I help my clients file for bankruptcy, I don’t notify landlords unless my clients are behint on rent and are planning on either needing to stop an eviction or are planning on leaving.

Unless you are already significantly behind on rent and need to halt an eviction (or plan to leave that apartment anyway), there is usually no need to alert your landlord, unless you specifically want your rental lease included on a schedule form.

How Does The Landlord-Tenant Relationship Typically Shift When A Renter Files For Bankruptcy?

In many cases, filing for bankruptcy can make your landlord-tenant relationship more tense. An attorney can help smooth things over by, perhaps, advising you on making a reasonable offer to your landlord.

If your landlord agrees to accept a lesser amount in lieu of normal rent payment for a set number of months, this can help diffuse the tension somewhat, while allowing you to remain in your current apartment.

Still Have Questions? Ready To Get Started?

For more information on renters and bankruptcy in Florida, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (407) 255-7458 today.