Motions for Relief From Stay

When a bankruptcy case is filed there is an initial order from the Court that bars additional creditor collection activities.  This 'automatic stay' prevents foreclosure sales, garnishment of wages, judgment liens, and other creditor activity.  There are some instances in which the automatic stay does not apply at all.  Creditor offsets of deposits on hand is an easy example.  Additionally, in some instances a creditor may justifiably ask the court from relief from the automatic stay in order to continue their collection activity.  This is most commonly found in the realm of foreclosure where payments to the mortgage company are not being made after the filing of the bankruptcy petition. 

While there are other instances that can lead to relief it is important to speak with us about the status of any collection activity that is pending against you.  We can let you know what to expect if a creditor seeks to obtain relief from the automatic stay.