Denver Bankruptcy Lawyers Wink & Wink Can Help If You’re Overwhelmed by Back Rent
Rent is one of the biggest monthly expenses many people have. For you, the first of the month may be synonymous with your bank account taking a hit. And any excitement from payday at work can quickly diminish when much or all of the paycheck has to go toward paying rent.
If you lose your job or incur large debts from overwhelming credit card or medical bills, it may become harder to pay that big fee every month. The back rent may soon pile up and up.
Some landlords may be lenient, especially if you’re going through hard times, and may help you come up with a payment plan. Others might not be. Even friendly, understanding landlords may get to a point where if your back rent is not paid up, they’ll begin the eviction process.
If your debt is getting out of control, it may be time to consider filing for bankruptcy. Unfortunately, bankruptcy likely only puts off eviction for a short while unless you can quickly resume lease payments and cure your missed payments. In most cases, declaring bankruptcy doesn’t make sense as a way to stop eviction.
However, bankruptcy can be very effective at getting you out of liability for a broken lease. If you are behind on your rent payments and cannot catch up, it is likely best to move someplace you can afford and then file for bankruptcy to get out of the liability for money owed from breaking the lease at your previous home.
To best explore your options and make sure bankruptcy is the right fit for you, it’s essential to first contact a successful debt settlement attorney, Wink & Wink.
The Two Types of Personal Bankruptcy
For individuals, there are two types of bankruptcy. Wink & Wink can help you determine which is the right one for you.
- Chapter 7 bankruptcy – Some refer to this form of bankruptcy as “straight bankruptcy.” It erases the vast majority of your unsecured debts, including credit cards, medicals bills, and, yes, leases. You will then not have to pay the owed back rent.
- Chapter 13 bankruptcy – This form of bankruptcy includes a three- to five-year repayment plan that may require you to pay a portion of your unsecured debts, with the rest discharged. While you may have to pay some of the back rent you owe in Chapter 13, you may also be able to get a discharge on some or all of it in Chapter 13.
How Bankruptcy Helps With Back Rent
As previously stated, declaring bankruptcy is not a good way to avoid eviction, as it will only delay the eviction for a short while. Better to move into a more affordable home, such as a cheaper apartment or moving in with a family member or friend for free or at a lower cost, while you get back on your feet, financially.
Moving out of your home will still mean you’re obligated to pay the back rent or any other financial obligations that occurred from breaking the lease early. So that’s why once you’ve moved out, it may be the right time to declare bankruptcy. If you file for Chapter 7 bankruptcy, your back rent will be wiped out entirely. If you file for Chapter 13 bankruptcy, you may be required to pay off a portion of owed back rent through the repayment plan, but it is likely that some or all of the rent owed for breaking the lease will also be erased in Chapter 13.
Be sure to consult a bankruptcy attorney, such as Denver-based lawyers Wink & Wink, before taking this important step.
Timing Is Everything
You shouldn’t be hasty when you file for bankruptcy. You need to make sure it’s the right choice for you. If you’re not paying your rent and your landlord is moving for eviction, your priority should be finding someplace to live. Thereafter, you may wish to file bankruptcy to get out of the liability for breaking your lease.
Plus, if the landlord has a judgment of possession before you file for bankruptcy, the eviction can still proceed without delay. It’s important you find a more affordable home before it comes to this.
Call a Denver Bankruptcy Law Firm Today
No one wants to be evicted. If your back rent is piling up, the longer you wait, the more likely you will be evicted and have fewer options to avoid it. That’s why it’s crucial you contact bankruptcy attorneys with years of experience helping clients get the debt relief they need. Learn the right choice for you and your situation. The consultation is completely free. Call Wink & Wink at 303-410-1720, or contact us online to begin getting help today.