Creditors file a motion for relief, when they want relief from the automatic stay. Typically this is done if the creditor wants to take collection steps against the bankruptcy filer. For example, this could be proceeding with foreclosure, repossession, or other forms of collection.
Most commonly, a motion for relief is filed when payments are not being made post-petition for mortgage or vehicle payments.
What should you do if you receive a motion for relief?
First, fight the urge and try not to panic.
Second, reach out to your attorney, they will be able to help with next steps and to determine if there are any options you may have. Your attorney will be able to help you look at the big picture and what will be in your best interest regarding the motion for relief.
What should you do if you believe you are current on payments? Start gathering information that corroborates the payments. For instance, receipts, voided checks, or statements.
What happens if the motion for relief is granted? If the motion for relief is granted, the creditor no longer has to stay bound to the limits of the automatic stay and can start collection efforts. That being said, just because the automatic stay is granted, doesn’t mean that the lender will not work with you. Depending on the lender, they may still work with you so that collection efforts are not started right away.
Call Now for a Free Strategy Session from a MN Bankruptcy Lawyer from Kain & Scott
The best thing to do when a motion for relief is received, is to reach out to your attorney. Your attorney will be able to help guide you in the right direction. Visit www.kainscott.com today. You will be glad you did.
