Eviction after Relief from the Automatic Stay

After filing for bankruptcy an automatic stay is put in place by the bankruptcy court stopping all collection and legal activity against the debtor. In essence, the creditor will no longer be able to contact the debtor regarding collecting of a debt owed and pursue any legal action against them. The automatic stay also protects the debtor by stopping foreclosure, lawsuits, evictions, judgments and wage garnishments. The only way the creditor can recover property from the debtor is by filing a motion with the court for relief from stay. The creditor will have to show the bankruptcy court proof of owning the property and the reasons for asking for relief from the automatic stay. After the motion is granted by the bankruptcy judge, the creditor can once again proceed with foreclosure and eviction proceedings against the debtor. In some cases, where the bankruptcy filing is proved to be being abused by the debtor, the creditor can file a motion to obtain extraordinary relief to prevent the debtor from filing bankruptcy in the future to stop foreclosure or eviction.

When filing bankruptcy, the automatic stay will stop foreclosure and an eviction but it will only be temporary unless the debtor can work something out with the creditor who holds the title on the property. Depending on the individual’s situation a bankruptcy attorney should be involved to protect that interest of the debtor and to get the maximum amount of benefits that a bankruptcy filing offers including the automatic stay.

Getting answers to those tough bankruptcy questions needs to be thought of before you make a decision when it comes to your financial problems. Finding the answers to help you understand your situation more clearly can help you make an informed decision about filing bankruptcy. Take a minute to call or fill out the form to have a FREE NO OBLIGATION CONSULTATION with a bankruptcy attorney in your area.