A â€motion to lift the automatic stay†is sometimes filed by a lender/creditor (usually for a home or vehicle) after a Debtor has filed bankruptcy (much of the time, after filing Chapter 7 bankruptcy). It is a process in which said lender/creditor acquires the bankruptcy court’s authorization to foreclose on real, or repossess personal property (possibly a vehicle), that is liened by said lender/creditor. The â€automatic stay†will be the protection which you as a Debtor get when you file bankruptcy. It truly is what puts a stop to all of the creditors. After declaring bankruptcy (usually Chapter 7 bankruptcy), for the creditor to take action against you, or a property which you have control of, that lender/creditor must â€lift†this protection by filing a motion to the court. A â€motion to lift the automatic stay†is usually filed in the place that the debtor, either before or after filing bankruptcy, is far behind on payments on a piece of real or personal property. It typically always filed by a lender/creditor where Chapter 7 bankruptcy was filed within a short time before a foreclosure date. If you are contemplating filing bankruptcy, be sure you understand the effects of this automatic stay in regard to your property. Remember that all the chapters of bankruptcy are different, and depending on the chapter of bankruptcy you file, your property could be affected differently. It is among the many reasons why it is important to speak to a bankruptcy attorney if you’re thinking of filing bankruptcy. It is very important to seek the advice of a bankruptcy attorney who's knowledgeable about the rules in your area (e.g. if you’re filing bankruptcy in Arizona, it’s essential to speak to an Arizona bankruptcy lawyer).
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