Financial and Credit Consequences of Getting Evicted for Non-Payment
Financial and Credit Consequences of Getting Evicted for Non-Payment
Blog Article
The possibility of being evicted due to not paying the rent can be a very serious problem however, the legal and financial responsibilities aren't over once you have moved out. Landlords are often able to investigate rent arrears using a variety of legal means. Understanding if you get evicted as well as what to do to respond is essential to securing your financial future.
What Happens After Eviction
Following eviction, many tenants believe that the situation has been resolved. However, landlords can -- and often do -- seek to recover the rent owed up to the end of your lease, or until the property is rented again. It is usually done through civil court, where they may request a money judgement against your.
If the court rules in favor of the landlord you could be liable under law to repay not just the rent, but also additional expenses such as interest, damages and legal costs.
Ways Landlords Collect Unpaid Rent
1. Small Claims Court or Civil Lawsuits Landlords are able to file a case to collect rent. If successful, they receive an award that is enforced through wage garnishments or liens.
2. Collections Agencies: Unpaid rent can be handed over in the hands of debt collection agencies, resulting in a constant call and damage to your credit score.
3. In the case of credit reporting, a judgment can be reported on your credit report, reducing your ability to obtain loans, rent or get financial products in the future.
Protecting Yourself After Eviction
Even if you've already been evicted but there are still steps you can take to reduce the damage that will be long-lasting:
* Talk about a payment plan A few landlords are willing to accept installments, especially if you show sincerity in resolving the outstanding debt.
* Request the validation of your debt: If a collection agency calls you, make sure they have written proof of the debt prior to agreeing to pay.
* Research Legal Aid Legal aid in your area: Local legal aid agencies frequently provide no-cost or low-cost advice for tenants who have post-eviction financial claims.
* Check Your Credit Report: Keeping an eye on your credit report can help you dispute mistakes or take action when a debt gets recorded.
The Benefit of Proactive Action
Paying your rent promptly- even after eviction -could help avoid further legal issues, ease stress, and even let you accept a lower amount than the entire amount due. Being willing to accept responsibility can make an important difference.
Final Thought
Eviction isn't the end of your journey to housing. If you are aware of how landlords can pursue unpaid rent and acting prudently, you can minimize the legal risk and start building your financial stability. It's never too late to act and take action with confidence.