What is The Effect of Bankruptcy on Your Residential Lease in NJ? Generally, if you are behind on rent, bankruptcy may help you keep the property. However, bankruptcy cannot prevent eviction for other reasons. To avoid being evicted, you must pay back rent if you have not yet done so. Additionally, you must give notice to the landlord of any defaulted payments.
How to Know About The Effect of Bankruptcy on Your Residential Lease in NJ
The effect of bankruptcy on residential lease in NJ depends on the type of bankruptcy you file. A chapter 7 bankruptcy will not cure your lease obligations. Chapter 13 bankruptcy will cure your lease obligations over the course of a repayment plan. However, it is crucial that you stay current on your lease payments until you have completed your bankruptcy plan. If you don’t want to lose your rental property, you should consider filing a chapter 13 bankruptcy.
Although a bankruptcy on your lease may make you unsuitable for rental property, it is possible to convince a landlord to rent to you again after filing for bankruptcy. A recent payment record may also convince a landlord that you’re a responsible tenant, demonstrating that you’re able to make your rent payments. You can also present the landlord with references to prove your responsibility. Alternatively, you can offer a co-signer who can guarantee rent payments.
Although Section 365 of the Bankruptcy Code allows tenants to assume a commercial lease if they are current in their payments and cure any post-petition defaults, the landlord may still be able to evict the tenant. However, the tenant has 120 days to decide, and can ask for an extension of 90 days. If you have no idea whether a tenant is capable of completing a post-petition lease, it can be dangerous for the property owner.