Falling behind on rent can place overwhelming pressure on individuals and families in New Jersey. When past-due rent continues to grow and eviction becomes a real concern, many people wonder whether bankruptcy can provide a path to relief. The good news is that both Chapter 7 and Chapter 13 bankruptcy may allow you to address back rent, depending on your circumstances. Understanding how each option works is essential for anyone considering bankruptcy as a way to regain control.

At Juan C. Velasco, Esq., we assist New Jersey residents in evaluating their options and determining the most effective way to move forward.

Including Back Rent in a Bankruptcy Filing

Back rent is considered unsecured debt, similar to credit cards or medical bills. This means that, in most cases, you can include it in a bankruptcy petition. How the debt is handled depends on whether you file Chapter 7 or Chapter 13.

Back Rent in Chapter 7 Bankruptcy

Chapter 7 allows eligible filers to eliminate many unsecured debts through a discharge. Back rent can be discharged under Chapter 7, but there are important considerations:

• It will not stop an eviction already finalized in court.
  If a landlord has already regained possession of the property through a court order, Chapter 7 cannot reverse that decision.
• An automatic stay may temporarily pause an eviction.
  If the eviction is not yet finalized, the bankruptcy filing can delay proceedings, offering some time to plan next steps.
• You cannot keep the rental property unless you catch up.
  Even if your back rent is discharged, your landlord is not required to continue renting to you unless you bring the account current.

Back Rent in Chapter 13 Bankruptcy

For individuals who want to stay in their home, Chapter 13 may offer stronger protections:

• Back rent can be repaid over 3 to 5 years through a court-approved repayment plan.
• Chapter 13 can stop an eviction, provided the landlord has not yet obtained a judgment for possession.
• You must continue paying future rent on time to remain in the property.

This option is often ideal for those who have steady income but need time to catch up.

What If the Landlord Has a Judgment for Possession?

If your landlord has already received a judgment for possession, bankruptcy becomes more complicated. The automatic stay may not apply, and you may have limited ability to prevent removal from the property.

However, every case is unique, and speaking with a bankruptcy attorney can help determine what options may still be available.

Should You Include Back Rent in Your Filing?

Including back rent in bankruptcy makes sense if:

• You cannot catch up on payments on your own
• You are facing eviction
• You need relief from additional debts like credit cards and loans
• You want time to reorganize your finances

At Juan C. Velasco, Esq., we help individuals assess their goals—whether they want to stay in their home or move on with a clean slate—and choose the bankruptcy chapter that fits best.