Why Filing for Bankruptcy Despite Rent Relief Can Be Your Best Option

Category: Bankruptcy

By Noah Johnson

As the world begins to make its way towards normalcy, at least as close as it can get, responsibilities such as rent will slowly creep back into the lives of New Mexicans.

The New Mexico Supreme Court has begun the process of lifting moratorium evictions for renters around the state after an almost two-year pause on evictions. The moratorium has allowed thousands of tenants to live in their homes without the fear of being evicted due to faulting on payments.

As the moratorium for renters is being lifted, a new program is being put in its place to offset renters feeling like they are being thrown into the deep end. The Eviction Prevention and Diversion Program aims to help people stay in their homes by providing federal funds to landlords to settle debts between them and their tenants.

While this program of rent relief brings much-needed sunshine on what seems to be an eternity of cloudy days, just like the unemployment benefits and stimulus payments at the beginning of the pandemic, the aid will eventually come to a halt, and in most cases, the debt will still be growing. Being behind on rent might only be the tip of the debt iceberg. Filing for bankruptcy is an option that can assist people in getting a hold of their debts and getting rid of them for good.

Filing for bankruptcy can seem like a scary and complicated process, a process one might think they would never have to go through. While it will affect your credit for several years and require a new plan of action for dealing with finances, filing for bankruptcy can be a stress-free and straightforward process when working with the right attorney. Ron Holmes assists people in getting back on their feet and in a financial state of ease. Contact Ron Holmes today for a free, no-obligation consultation to discuss bankruptcy options.