According to bankruptcy law once you file with the court, your creditors are immediately prohibited from harassing you. This is called an “automatic stay,”and it means an end to the constant phone calls, bills in the mail and threats to your possessions or livelihood. That may sound great, but there are some exceptions to every rule. In this case that means that some of your creditors may still be allowed to pursue payment.
If a creditor can prove good cause he can go to the court and ask that the automatic stay be lifted. Such an action is most commonly taken by a secured creditor – one who has a legal claim to your assets. The company who is financing your car is a prime example. A landlord threatening eviction is another.
In order to have the automatic stay lifted the creditor will have to enter a written motion with the court. You will be notified and a date will be set for a hearing. The creditor must convince the court that his argument is valid at the hearing. If he can do so the court will lift the stay and the creditor will be free to try any means within the law to collect the debt.
Even if the court has lifted the stay, there are other extenuating circumstances that may apply. If this is the second time within a year that you have filed for bankruptcy the court may issue a temporary lift. If it is the third time, you can ask that the stay be enforced throughout the bankruptcy process.
Whatever the particulars of your case, you must have legal representation. Finding the right bankruptcy lawyer who will look out for your best interests and guide you through the intricacies of every court procedure that may arise is essential. Because every bankruptcy case is different you should make sure that the attorney you hire has had plenty of experience dealing with situations specific to yours.
The attorneys at Parker Lawyers are familiar with all the aspects involved in the various chapters of bankruptcy. Call for your consultation today – 303-841-9525.