On January 15, 2022, the New York eviction moratorium terminated. For many tenants who are behind in their rent across the state, this means that they are now subject to eviction by their landlords. Bankruptcy can be helpful in resolving the debt that unpaid rent has triggered.
In a Chapter 7 bankruptcy, the tenant who is leaving the premises can include the past-due rent as an unsecured debt subject to discharge. In a Chapter 13, the tenant can also leave the premises and include these arrears to be potentially discharged. Alternatively, the Chapter 13 tenant can remain in their home and cure the arrears over a period in their Chapter 13 plan, provided such cure is made “promptly.” What is considered “prompt” will vary from case to case, based upon individual circumstances.
If you are a NYS tenant facing eviction and would like to learn more about how bankruptcy can help you, contact us for a free consultation