Bankruptcy

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Bankruptcy 2017-09-19T17:10:14+00:00

BANKRUPTCY

Bankruptcy is a legal proceeding in which an individual who cannot pay his or her bills can get a fresh financial start. Filing bankruptcy immediately stops all creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law.

MOTION TO LIFT STAY (BANKRUPTCY)

The filing of Motions to Lift Stay are governed by United States Bankruptcy Code, Rule 4001. It usually takes about a month to obtain relief from the automatic stay. The following illustrates the process to obtain relief from stay:

  1. After Debtor has defaulted on at least one (1) post-petition payment, Creditor drafts a Motion for Relief from Stay;
  2. Said Motion is filed in the same District as where the Debtor originally filed for bankruptcy protection;
  3. If Debtor and Creditor reach an agreement prior to the hearing date, then Creditor shall draft an Agreed Order setting forth the terms of the agreement;
  4. If Debtor and Creditor are unable to reach an agreement prior to hearing, then an adversarial hearing shall take place and Creditor shall obtain an Order in accordance with the Court’s findings.

UNOPPOSED MOTION TO LIFT STAY (BANKRUPTCY)

Unopposed Motions to Lift Stay are governed in principal by the United States Bankruptcy Code, Rule 4001. As the name suggests, the Motion and Order are not opposed by the Debtor because Debtor has decided to surrender the property and an adversarial proceeding is not necessary. Therefore, the process may only take two (2) weeks. Here is a brief summary of the process:

  1. Creditor drafts Unopposed Motion and Order;
  2. After obtaining Debtor’s approval (signature) of the Unopposed Motion and Order, Creditor files the Motion and Order together;
  3. After the Order is executed by the Bankruptcy Judge, Creditor may repossess or foreclose its interest in the property made the basis of the lien.