Once a bankruptcy case is filed, the debtor is protected by what is known as an ‘automatic stay.’ This is a fancy legal
In many cases, Chapter 7 bankruptcies specifically, debtors don’t have anything to worry about between the automatic stay and their discharge. But, in some instances, and often during the course of a Chapter 13 bankruptcy, a creditor may file a Motion for Relief from the Automatic Stay.
Typically, this motion is filed by auto or home lenders and it means that these creditors are looking to begin collections proceedings once more. If the court grants the motion for relief, creditors can move forward with things like repossessions or foreclosures. Motions for relief tend to be filed in cases with large arrearages or collateral which the creditors hope to pursue.
If you have received a notice of hearing and motion for relief –do not panic! There are steps that can be taken to prevent the protection of the automatic stay from being lifted. The most important step to take is to contact your attorney immediately after receiving a motion for relief notice from our office.
Most motions for relief can be easily resolved with a little back-and-forth between our office and the creditor’s representatives. The resulting Agreed Order by both parties resolves the issue entirely. Beginning these negotiations early is the key to making sure that no deadlines are missed and the Court doesn’t grant an order of relief in favor of the creditor. If you receive a motion for relief in regard to your bankruptcy, contact our office as soon as possible for assistance!
Conclusion
File your case with skilled, experienced attorneys that know all of the ins-and-outs of MN bankruptcy law. Kain & Scott is MN’s NICEST, and HIGHEST Google reviewed bankruptcy law firm. Visit www.kainscott.com today to learn more or schedule a free, no-obligation consultation!