Does Bankruptcy Impact My Housing Benefits?

We know that bankruptcy can impact your government benefits in some ways. But that doesn’t mean that it makes it impossible to keep them. However, if you have declared bankruptcy or plan to, there are some things you need to know about your housing benefits.

Housing Benefits and Bankruptcy

If you live in government housing, sometimes known as Section 8 housing by a Housing Choice Voucher Program, bankruptcy will not impact your ability to continue to live in government-subsidized housing. However, after filing for bankruptcy, there will be some changes to your credit score that may impact future housing.

Section 8 Housing Requirements

Under 2020 Section 8 Housing requirements, the following are the Knox county income limits: To determine these income limits, the United States Department of Housing and Urban Development (HUD) utilizes the following gauge:

• Extremely Low Income: 30 percent of the area’s median income level.
• Very Low Income: 50 percent of the area’s median income level.
• Low Income: 80 percent of the area’s median income level.

Under these housing requirements, filing for bankruptcy does not impact your ability to stay in your current housing. However, landlords who participate in the Section 8 program can use any legal, non-discriminatory standard for screening tenant applications. This includes your credit score being too low, making the landlord wonder if you can afford to pay for the portion of your rent not covered by the voucher program. This shouldn’t deter you from filing though. One benefit of filing for bankruptcy is that under the automatic stay if you face an eviction, this must cease. However, the automatic stay is not permanent and does not prevent a landlord from enforcing an eviction granted by a judge before the Section 8 tenant filed for bankruptcy. Bankruptcy is complicated, especially when you rely on government assistance to get by. But when you need financial relief, you need to not let the fear stop you.

Housing Benefits and Bankruptcy in Ohio

When you rely on government assistance including Section 8 housing, you likely are worried that by filing for bankruptcy, your landlord will have concerns about your ability to pay rent. But know that the financial freedom you have after bankruptcy will be all worthwhile. When it comes to filing for bankruptcy in Columbus and central Ohio, you need to know what options are available to you and that you can move forward after a bankruptcy filing. If you are facing debts you can’t pay and are considering bankruptcy, learn more about how The Jones Law Firm can help you or contact us for a free consultation about your options.