How Automatic Is The Automatic Stay?
Many clients come to us frustrated because a debtor has entered bankruptcy and the court has issued an automatic stay. This “stay” prevents creditors from seeking payment on a debt from the debtor. The good news is creditors may petition the bankruptcy court to obtain relief from the automatic stay. If granted, the creditor may resume efforts to collect on the debt, despite the bankruptcy proceeding.
At Delev & Associates, LLC, we have an entire team of professionals from various fields within the financial sector assisting our experienced bankruptcy attorneys to advise our clients on the best approach for each individual situation. Clients come to us because of our reputation and experience representing creditors’ rights in bankruptcy court. Though our office is located in Cincinnati, we serve creditors throughout the state.
Secured Claims May Allow For Relief
There are several situations where it may be appropriate for a creditor to seek relief from the stay. These situations include home mortgages, car loans and other secured transactions under the UCC. If the debtor is no longer paying on their secured debt, or is not paying enough to protect the secured interest of the creditor, the court may lift the stay.
Success depends, in part, on whether enough equity exists in the underlying property to protect the creditor. Otherwise, if the home is underwater, for example, the court may not lift the stay. If a debtor fails to continue to pay on a mortgage, however, you may seek relief to begin foreclosure proceedings, or even resume proceedings underway. In addition, you may seek eviction for tenants who are not paying rent.
Talk With The Professionals About Automatic Stay Relief
We are a collections law firm facilitating both commercial and consumer collections. We do not help people file for bankruptcy relief under the Bankruptcy Code.