The Supreme Court of Georgia declared a \u201cjudicial emergency\u201d on March 14, 2020, and
\nordered a suspension of jury trials because of health concerns over the spread of the virus. The
\njudicial emergency also affected many debt collection procedures, including evictions and
\nforeclosures. The initial Order only lasted about a month, but it has been extended several times
\nsince then. As of the date of this blog, it has most recently been extended to Tuesday, August 11,
\n2020, at 11:59 p.m. The Order is clear that safety is an overriding concern, so other extensions
\nare certainly possible.<\/p>\n
However, these Orders don\u2019t change the law, and ultimately, they will not wipe out debt,
\nor prevent landlords, banks, mortgage companies, and other creditors from exercising their
\ntraditional debt collection powers in the event of default. The emergency just delays the exercise
\nof those rights.<\/p>\n
So how can filing bankruptcy<\/a> stop an eviction or foreclosure? With regard to rent, if you If a state court has granted a Dispossessory before a bankruptcy is filed, neither Chapter 7 As for foreclosures, a Chapter 7 will delay, but not prevent them. However, if you have Call us for a free consultation at 770-683-3303<\/a>, and stay safe.
\ndefault on your rent, the landlord\u2019s remedy is to declare the lease to be terminated, and to recover
\npossession of the property by filing a \u201cDispossessory\u201d in state court. This is an accelerated
\nprocedure that the renter will usually lose– unless he or she brings the rent current, or unless
\nsome consensual agreement is reached with the landlord. A Dispossessory normally only requires
\nseven days to accomplish. If it is granted, the landlord can put your furniture and possessions out
\non the street under the protection of the police over your objections.<\/p>\n
\nnor Chapter 13 will not stop an eviction, even though Chapter 7 will wipe out any debt that is
\nstill owed as the result of the pre-bankruptcy default. A Chapter 13 is different. It is a debt
\nconsolidation plan, and can actually stop an eviction\u2013 but the \u201cplan\u201d must provide for monthly
\npayments to the landlord that are enough to \u201ccure\u201d the default during the remaining part of the
\nlease. Thus, if you have six months left on your lease, and if you are $600 behind, your plan
\nwould need to pay at least $100 per month to the landlord catch up that default within the
\nremaining lease period as you continue to make regular rent payments. Curing a rent arrearage is
\nusually a short term fix in Chapter 13<\/a>, because the bankruptcy court will not force the landlord to
\nrent to you beyond the term of the original lease, even though the plan may last much longer. Of
\ncourse, the landlord could agree to another lease period voluntarily. It is very helpful to make
\nlandlords happy, because they have real power in this situation.<\/p>\n
\nenough equity in your property, you may be able to protect tens of thousands of dollars that
\nwould otherwise be lost in foreclosure. Chapter 13 is the tool used to stop foreclosures
\npermanently, and allow you to cure mortgage arrearages over a period of years while you
\ncontinue to make regular monthly mortgage payments. Chapter 13 can reduce what you pay on
\ncar notes or unsecured debt, and make it affordable for you to cure mortgage defaults over time.
\nChapters 7 and 13 are different tools that require planning and discussions with a bankruptcy
\nlawyer to get a clear idea of what can be done for you in your unique situation.<\/p>\n
\n