Downfalls of the Automatic Stay – Harris County Georgia bankruptcy attorney

Downfalls of the Automatic Stay – Harris County Georgia bankruptcy attorney
Columbus GA chapter 7 bankruptcy

Loans from a pension – Despite the automatic stay, money may be withheld from your salary to repay a loan from certain types of pensions such as many work-related pensions and IRAs.

Multiple filings – If you had a bankruptcy case pending during the previous year, then the stay will automatically cease after 30 days unless you, the trustee, the U.S. Trustee, or a creditor requests for the stay to continue and demonstrates that the current proceeding was filed in good faith. If a creditor had a motion to lift the stay pending in the previous case, the court will presume that you acted in bad faith, and you will have to prove this presumption wrong to enjoy the protection of the stay in your present proceeding.

Usually, a creditor can avoid the automatic stay by requesting the bankruptcy court to remove the stay, if it is not serving its intended purpose. For instance, if you file for bankruptcy the day before your house is to be auctioned in foreclosure. You have no equity in the house, you cannot pay your mortgage dues, and you have no way of keeping the home. The foreclosing creditor can ask for permission to proceed with the foreclosure and that permission is likely to be granted.

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