CLARK BARS UPDATE - AUGUST 12TH 2020
Clark & Walker, P.C. - Attorneys at Law
Date: August 12, 2020
COVID-19 - WHY FILE NON-PAYMENT EVICTIONS?
By: Christopher Hoynicki
Why file? Many of our clients are aware that the CARES act expired at the end of July but have delayed filing non-payment evictions for various reasons. These reasons range from a misunderstanding of the differences between the CARES act and the Governors Executive Orders to clients simply wanting to avoid the bad PR associated with physical evictions. However, filing a non-payment eviction case has many advantages which are not just limited to possession of the property:
- Securitized Debt – By filing a nonpayment case you obtain a judgment against the debtor. Judgments are secured debt, are easier to collect, and automatically last for 10 years.
- Incentive to Cure – The judgment obtained in an eviction case shows on a tenant’s credit which in turn provides an incentive for tenants to pay the judgment.
- Open Communication & Rental Assistance – In order to delay a physical eviction under the Governors Order, tenants must communicate with their landlords and as of August 21, must enter into a payment arrangement and show proof that they have filed for rental assistance.
- Beat the Rush – At some point in the unknown future this hiccup in the rental industry will come to a close, landlords who do not already have non-payment judgments will have to start from scratch in a system that will be fraught with delays.
Remember, the focus of the media is on physical evictions. This is the last step in the eviction process and just one of the benefits of filing a non-payment case against a tenant. It is possible to obtain an eviction judgment, obtain the majority of benefits for doing so, and hold off on the physical eviction until the right time.
If you have questions about this information, please consult with an attorney.