There are a lot of bills that may pile up and cause you to be in debt. However, when you realize you’ve fallen behind on paying your rent you’re likely to find this to be more stressful than any of the other types of debt you may encounter. Unfortunately, COVID has caused many Americans to find themselves coping with the ongoing stressor of a looming eviction.
In March the Census Bureau published a survey in which they discovered that around 20% of adults who were renting their homes in February reported that they hadn’t paid January’s rent. There are also studies that have taken a look at home many adults faced eviction in Florida throughout the 2020 pandemic. This number was also high – 48,000 people.
When you find yourself suffering from problems paying your rent, it’s likely that you also have a lot of other debt as well. In this case, bankruptcy may be your best solution.
How Bankruptcy May Be Beneficial
The nationwide moratorium on rent soon coming to an end, approximately 11 million Americans who are behind on their rent are in jeopardy of losing their housing. If you’re one of these Americans you may be wonder what the impact on your financial future will be. While this is definitely a grim situation it doesn’t mean that you won’t ever be able to get housing again just because you have an eviction on your record. You should also know that if you’re considering bankruptcy, you’re also likely to get financially stable housing again in the future.
When you file for bankruptcy something called an “automatic stay” will be put in place. This will initiate a process that will stop most collection efforts. Even though there are a few exceptions to this rule, most creditors won’t be able to make any attempts to collect a debt from you. Included herein are any eviction lawsuits that haven’t already proceed too far. If the process can’t be halted, when you file for liquidation of your affairs it’ll either be discharged so you’re no longer obligated to repay what you owe or you’ll be given a more manageable repayment plan. This plan may give you enough time to catch up on your rent while staying in your home. In either case, you’ll end up in a much better position and you’ll be happy to know that you may not even be evicted at all.
How to Find New Housing
Even when your debt has been discharged because you’ve filed for bankruptcy an eviction may still be on your record. When this shows up on your credit report you should talk to your landlord about having your record expunged once you’ve paid any outstanding debts. Of course, you may have a landlord who isn’t agreeable with these terms. In this case, you should work on improving your credit score. If you find yourself in need of new housing while working through the eviction process or trying to improve your credit, you should apply for individually-owned properties. Their owners are more likely to take a chance on you.
Dealing with Your Concerns
As someone who may be concerned about facing eviction, you should talk to the experts at Weller Legal Group in Tampa, FL before deciding what to do. They can help determine how much you owe and how to move into a better financial situation for the future. If they determine that bankruptcy is the right option for you, they’ll give you the support you need to move through the process. Clearly, these are great reasons for you to contact them today.
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