Money

Bankruptcy and Eviction in Harris County: What It Can and Can’t Stop

This article is general information about how the timing of a bankruptcy filing can affect an eviction. Bankruptcy is a serious step with real financial and credit consequences, and it is not a quick fix for an eviction. Talk to a bankruptcy attorney before you decide anything.

If you file before your landlord gets a judgment for possession.

Under federal law, filing a bankruptcy case generally creates an automatic stay right away. It pauses many collection actions, including an eviction case. The stay is temporary. Your landlord can ask the bankruptcy court to lift it, it does not erase what you owe, and it does not guarantee that you keep your home. There are also other narrow exceptions to the stay.

If a judgment for possession has already been entered.

Federal law says the automatic stay does not apply to continuing an eviction when the landlord got a judgment for possession before you filed. So filing after a judgment mostly does not stop the eviction.

There is one narrow exception, in subsection (l) of the same law. To use it, you have to file two sworn certifications and take certain steps. When you file your bankruptcy case, you file and serve on your landlord a certification, under penalty of perjury, that under state law there are circumstances in which you would be allowed to cure the entire unpaid rent that led to the judgment after the judgment was entered, and that you have deposited with the court clerk any rent that will come due during the next 30 days. Then, within those 30 days, you must file a further certification, also under penalty of perjury, that you have cured the entire default. Whether this can work in Texas depends on whether Texas law lets you cure the debt after a judgment. A bankruptcy attorney can tell you.

Why timing matters.

Because the rules are so different before and after a judgment, waiting can change your options. The deadlines in your eviction case keep running unless a stay applies, so if you are thinking about bankruptcy, talk to an attorney quickly.

Where to get help.

The State Bar of Texas lawyer referral line can help you find an attorney. It is 1-877-9TEXBAR, which is 1-877-983-9227. It is the number that Texas eviction law requires on your court papers for people who need help finding a lawyer. Ask for a bankruptcy attorney, and ask about cost and whether free or low-cost help is available. Legal aid groups in NeighborSTAND's Resources directory can also help with your eviction case. Other options, like rental assistance or negotiating a move-out date, are covered in our other articles.

Read the law yourself.

These pictures are the wording of the federal law, from the U.S. House of Representatives' website, 11 U.S.C. Section 362. Tap a picture to open it.

The rule that the stay does not apply after a judgment for possession, Section 362(b)(22):

11 U.S.C. Section 362(b)(22): the automatic stay does not apply to the continuation of an eviction of a residential tenant if the lessor obtained a judgment for possession before the bankruptcy petition was filed, subject to subsection (l). Tap to open the law.

The narrow exception, Section 362(l):

11 U.S.C. Section 362(l): the exception applies if the debtor files with the petition a certification that state law would allow curing the entire monetary default after the judgment, and has deposited with the clerk any rent due during the 30 days after filing, and then within 30 days files a further certification that the entire default was cured. Tap to open the law.

Open 11 U.S.C. Section 362 on the U.S. House of Representatives website

This is general information, not legal advice. Laws and court practices change and can differ by court. For help with your exact situation, talk to a legal aid advocate or an attorney.