Bankruptcy can be a valuable tool for people who find themselves overwhelmed with debt and no reasonable way to get out. While bankruptcy can help you get a renewed start on your finances, many people want to avoid bankruptcy if there is an alternative.
For over a year, many areas have instated, and extended eviction bans to help unemployed or underemployed people stay in their homes. As the situation changes with the COVID-19 pandemic, you may be starting to worry that you will need to take other measures to remain in your home when the ban is lifted.
Here’s what you should know about the eviction ban in Illinois and how it could impact your financial future.
Ban on eviction, not rent charges
The most important thing to know about the eviction moratoriums is that they do not keep your landlord from charging rent, even when you cannot pay. This means that even though your landlord cannot evict you, your rent charges may continue to accumulate.
The relief may help in the short term, but you could face a growing bill once Illinois lifts the moratorium. For some renters, it may be possible to pay off smaller portions of the overdue rent; for others, it may not be an option.
Using bankruptcy to stop an eviction
In some cases, bankruptcy can be a tool to help you resolve some of your debt and prevent eviction. Depending on your situation, if you file for bankruptcy before your landlord issues an eviction notice, the automatic stay that applies to your other debts may apply to your rent, too.
During the bankruptcy process, you might be able to avoid eviction while you work with your bankruptcy support team to find a way to resolve your past-due rent.
Bankruptcy can be a useful tool to help you stay in your home and get relief from your creditors. It is essential to talk to a knowledgeable professional to learn more about the support you need and the possible solutions for your situation.