Over the past year-and-a-half many people in Greensburg struggled financially. Jobs were furloughed or lost altogether, with no relief in sight. Even those who were able to go back to work went back to fewer hours in different positions at lower pay.
The federal government recognized the hardships many suffered and issued a moratorium on evictions. This meant many renters were able to stay in their homes without fear of being evicted, even if they could not pay their rent. However, that moratorium has ended, and many renters face a backlog of unpaid rent that they have no means to pay back. What can these renters do in such situations?
The Supreme Court ends the federal moratorium on evictions
The Supreme Court recently weighed in on the federal moratorium on evictions and determined that the moratorium should end. The Court ruled that it required an act of Congress to further extend the moratorium and that since Congress failed to authorize one, the current administration had no right to extend the moratorium on its own without congressional approval.
Three justices dissented with the majority ruling, arguing that the continuing public health crises required an extension. The dissent also noted that the case should have been heard in a full briefing rather than in a truncated “shadow docket.”
What options do renters have now that the moratorium has ended?
Renters who are now faced with months of rent due that they have no means to pay may wonder what their options are. One option is to file for bankruptcy. Filing for bankruptcy has an undeserved negative stigma. It is actually a very viable and responsible way to address overwhelming debt in a way that benefits both you and your creditors so you can move forward on fresh financial footing.
In a Chapter 7 bankruptcy filing or a Chapter 13 bankruptcy filing, once the debtor files for bankruptcy this places an automatic stay on the eviction process. While this stay can be lifted under certain circumstances, the time it is in effect can give renters the time they need to come current on their past due rent and avoid eviction altogether.
Learn more about your rights if you are facing eviction
Facing eviction is a distressing experience. You may fear being homeless. However, there are options to avoid eviction, including filing for bankruptcy. Filing for bankruptcy can be the lifeline you need to come clean on your many debts and move forward into a brighter financial future.