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Rockland County Bankruptcy LawyerIn May, New York lawmakers extended the state's COVID eviction moratorium through the end of August. The moratorium put a temporary stop on evictions for renters who could prove that the financial difficulties they were having were due to the pandemic. But August 31 is just over a month away and it is unlikely it will be extended again, given the national moratorium on evictions expired June 30. This will leave many renters with the real threat of being evicted. One option they may have, however, is filing for bankruptcy, which can put a stop on any eviction action their landlord can take.

Bankruptcy and Eviction

When a person files for bankruptcy, an automatic stay is placed on any debt collection action creditors can take against them. This also includes the person’s landlord. However, it is important to realize that the filing and automatic stay must be done before the landlord begins any eviction proceedings. An automatic stay will not stop an eviction if the landlord has already obtained a judgment of possession against you before you filed for bankruptcy.

However, if your landlord has not started an eviction action against you – and with the moratorium still in place, that is the likely scenario – and you file for bankruptcy prior to August 31, the automatic stay will prevent your landlord from giving you the notice to quit. Your bankruptcy filing and automatic stay also prevents the landlord from trying to collect the past due rent because that is a debt that is now included in your bankruptcy filing.


hudson valley bankruptcy lawyerAs we discussed in our last post, one of the things you will need to prepare for when filing for bankruptcy is the impact on your credit report. Your credit not only affects your ability to qualify for new loans, it can also be a factor that landlords consider when you apply to rent an apartment, condo, or house. As such, you may be concerned about your ability to find housing after bankruptcy. Thankfully, however, there are things you can do to improve your chances of being approved for a lease.

Staying in Your Current Rental

If you were already renting at the time you filed for bankruptcy, you may be able to continue living in the same property. As long as you are making rent payments on time and following the other terms of your lease, your landlord is unlikely to evict you. The financial relief you obtain through bankruptcy often frees up funds that you can use for rent. When your current lease ends, your landlord may be willing to renew your lease based on your history as a reliable tenant.

Finding a New Rental

Applying for a lease at a new property can be more complicated after bankruptcy. You will not have a prior renting relationship with the landlord, and the fact that you have recently filed for bankruptcy will be immediately clear when the landlord runs a credit check during the application process. However, your credit is just one piece of information that the landlord will consider. You may be able to mitigate or offset the effects of your bankruptcy by providing other information with your application.


hudson valley bankruptcy lawyerIf you are considering filing for bankruptcy, you may be concerned about the fact that a bankruptcy filing will remain on your credit report for 10 years, making it more difficult to obtain housing, loans, and credit accounts in the future. However, chances are that if you are considering bankruptcy, your credit is already in bad shape. Filing for bankruptcy not only eliminates many of your current debts, it also gives you the opportunity to start rebuilding your credit.

Strategies for Improving Your Credit

Though rebuilding your credit can take time, it is possible with a smart approach. Here are some things you can do to work toward improving your credit score and demonstrating to lenders that you are reliable:

  • Review your credit report. One of the first steps toward rebuilding your credit is understanding where it currently stands. After bankruptcy, you can expect to see your filing on your credit report, as well as the elimination of your outstanding balances for many credit accounts, including mortgages, vehicle loans, and credit cards. If you find outstanding balances that should no longer be there, you can work with a credit bureau to ensure your report is accurate.


Rockland County bankruptcy lawyerMedical debt is a serious problem that plagues millions of people throughout the U.S. In 2020, surveys conducted by Credit Karma and found that the average American has over $2,000 in medical debt, and a substantial portion of the population has medical debt of $10,000 or more. High unemployment rates during the COVID-19 pandemic have exacerbated the issue, as many people have lost employer-sponsored health insurance coverage.

If you are struggling with medical debt, chances are that you are also facing financial hardship in other areas of your life, including difficulty keeping up with mortgage and credit card payments. If so, you may be wondering about your options for relief, including the possibility of filing for bankruptcy.

Reducing Medical Debt Without Bankruptcy

It is important to note that there are often other options for addressing your medical expenses without resorting to filing for bankruptcy. For example, you can attempt to negotiate your bills with your healthcare provider, which may result in a reduction of the costs or the creation of a payment plan that allows you to make manageable payments over time. You may even qualify for a financial assistance program offered by your provider based on your income and assets.


Rockland County bankruptcy attorneyFiling for bankruptcy can provide substantial relief for those struggling with unmanageable debts, but it can come at a cost. With the option of Chapter 7 bankruptcy in particular, many people are concerned about the necessity of liquidating their assets in exchange for debt relief. However, under New York law, certain kinds of property are exempt from bankruptcy judgments, meaning that you may be able to file for divorce while retaining the possessions that are most important to you.

What Exemptions Can New Yorkers Claim?

When you file for Chapter 7 bankruptcy in New York, you have the option to exempt certain assets from liquidation and sale using either the federal bankruptcy exemption scheme, or the state exemption scheme laid out in the New York Civil Practice Law & Rules statutes. Each scheme has its benefits depending on the types of assets you own. However, the New York state exemptions are typically more beneficial if you have significant equity in a home.

If you do choose to use the state exemption list, you can retain possession of the following assets as of April 1, 2021:

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