The Consumer Bankruptcy Reform Act of 2020 would really help folks who are behind on their rent. Current bankruptcy laws fall short, requiring you to catch up to stay.
Written by Attorney Andrea Wimmer.
Updated January 13, 2021
In its current form, Chapter 7 bankruptcy provides little protection for filers who have fallen behind on rent or had an eviction judgment entered against them. Either way, to stay in the home you’ll have to bring your rent current.
The Consumer Bankruptcy Reform Act of 2020 proposes to change that. It treats landlords like any other unsecured creditor and the filer doesn’t have to catch up on missed rent to stay in the home. At least to a certain extent. If you’re more than 6 months behind on rent and you want to stay in the home, you’ll have to pay your landlord the difference.
CBRA is not yet the law, so for now, bankruptcy doesn’t provide a solution for folks whose rent is coming due in full when the eviction moratorium ends on 1/31 (or whatever date it may be extended to by the incoming administration).
Some COVID-19 Specific Resources for Rental Assistance
Department of Treasury Emergency Rental Assistance Program
National Low Income Housing Coalition (NLIHC) COVID-19 Emergency Rental Assistance Programs