Disadvantages of the Automatic Stay – Richmond County Georgia bankruptcy lawyers
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Loans from a pension – Despite the automatic stay, money may be withheld from your wages to repay a loan from certain types of pensions such as many job-related pensions and IRAs.
Multiple filings – If you had a bankruptcy case pending during the previous year, then the stay will automatically terminate after 30 days unless you, the trustee, the U.S. Trustee, or a creditor asks for the stay to continue and demonstrates that the present proceeding was filed in good faith. If a creditor had a motion to lift the stay pending during the previous case, the court will presume that you acted in bad faith, and you will have to overcome this presumption to enjoy the protection of the stay in your present case.
Generally, a creditor can dodge the automatic stay by requesting the bankruptcy court to remove the stay, if it is not serving its intended objective. For example, if you file for bankruptcy the day before your house is to be sold in foreclosure. You have no equity in the house, you cannot pay your mortgage dues, and you have no way of retaining 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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