THE STAY PAUSES EVICTION EFFORTS; IT DOES NOT EXTINGUISH THEM.
PROCEEDING WITH AN EVICTION The stay pauses eviction efforts; it does not extinguish them. There are two main paths forward.
Path One:
The Residential Eviction Exceptions
Congress carved out specific relief for residential landlords. Under Section 362(b) (22), the stay does not bar continuation of an eviction if the landlord obtained a judgment for possession before the tenant filed for bankruptcy. A related exception, Section 362(b)(23), applies to evictions based on property endangerment or illegal drug use, provided the landlord files and serves a sworn certification. These exceptions come with procedure. For a pre-petition possession judgment, the tenant can temporarily preserve the stay by
certifying, at filing, that state law would let them cure the default and by depositing the upcoming rent with the court; the exception is then deferred for 30 days. If the tenant files no such certification, the exception applies immediately and a no relief- from-stay motion is needed. One caution: courts have required that the “judgment for possession” be final and non- appealable, so a possession order still within its appeal window when the tenant files may not qualify. See In re Nitzsky, 516 B.R. 846 (Bankr. W.D.N.C. 2014.
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