Get A Fresh Financial Start!
When seeking a fresh financial start, it is imperative that you fully understand the nature of the bankruptcy automatic stay. It is important because the automatic stay is activated when you successfully file for bankruptcy. It is the tool that prevents your creditors from pursuing collection activities against you. If you need clarification, you need practical assistance from a seasoned bankruptcy lawyer.
Jeppson Law has been serving the people of Missouri for more than 10 years. Our legal team is strongly committed to helping people in need get out of their debts to begin a fresh start. It is our philosophy that everyone deserves a second chance! If you need assistance, get a free initial consultation today!
What is Automatic Stay?
The Automatic Stay is an injunction automatically issued by the bankruptcy court when a debtor files for bankruptcy.
The Automatic Stay stops:
- Phone calls letters
- Most other collection activity
The court’s goal in a bankruptcy is to take a picture of your finances on the date of filing and then either liquidate unexempt property in a Chapter 7 Bankruptcy or allow you to set up a payment plan in a Chapter 13 Bankruptcy to get current on any arrearages. The Automatic Stay keeps things as they are until the court can decide. The Automatic Stay is replaced by the Discharge Order upon completing your Bankruptcy Case.
What is a violation of the automatic stay?
A violation of the automatic stay refers to any action taken by a creditor that goes against the protections provided by the automatic stay in bankruptcy. When the automatic stay is in effect, creditors are legally prohibited from engaging in certain collection activities or attempting to collect debts from the debtor.
Examples of actions that may constitute a violation of the automatic stay include:
- Collection calls and harassment: Creditors contact the debtor directly to demand payment or engage in aggressive collection tactics.
- Lawsuits and legal proceedings: Filing or pursuing lawsuits, judgments, or other legal actions against the debtor to collect a debt.
- Foreclosure proceedings: Initiating or continuing foreclosure proceedings on the debtor’s property.
- Repossession of assets: Attempting to repossess the debtor’s property, such as a car or personal belongings.
- Wage garnishment: Continuing or initiating wage garnishment to collect debts from the debtor’s wages.
- Eviction proceedings: Attempting to evict the debtor from a leased property due to unpaid rent or other financial obligations.
It’s important to note that there are exceptions and limitations to the automatic stay, and some creditors may be able to seek relief from the stay under certain circumstances. However, unless the court grants such relief, creditors are generally expected to comply with the automatic stay to provide the debtor with the intended protections and breathing space during bankruptcy.
What is a Motion for Relief from the Automatic Stay?
A Motion for Relief from the Automatic Stay is a formal request made by a creditor or party in a bankruptcy case to seek permission from the bankruptcy court to lift or modify the automatic stay. This motion is filed when the creditor believes there are valid reasons to continue or initiate collection activities despite the automatic stay being in effect.
Here are some key points regarding a Motion for Relief from the Automatic Stay:
- Purpose: Creditors file this motion to request permission to take specific actions that are otherwise restricted by the automatic stay. Examples include proceeding with foreclosure, repossessing collateral, or continuing legal proceedings.
- Valid reasons for filing: Creditors typically file a motion for relief when they can demonstrate that their rights or interests are being significantly harmed or that the debtor cannot meet the financial obligations related to the property.
- The burden of proof: The party seeking relief (usually the creditor) has the burden of proving that there are sufficient grounds to grant relief from the automatic stay. This typically involves demonstrating the existence of a valid and compelling reason.
- Notice and response: The debtor and other relevant parties in the bankruptcy case, such as the trustee, are notified of the motion. They can respond and present arguments against granting relief from the automatic stay.
- Court decision: The bankruptcy court evaluates the movement, considers the arguments from both sides and decides whether to grant or deny the motion for relief. The court’s decision is based on factors such as the parties’ interests, the automatic stay’s purpose, and the bankruptcy process’s overall goals.
Why Do I Need a Missouri Bankruptcy Attorney?
In addition to the possibility of violating the automatic stay, it is also worth stressing that bankruptcy law is very complex. Therefore, you need a bankruptcy attorney who possesses the following qualities:
- Choosing someone who can talk with you professionally, kindly, and calmly is important. If you can converse with your bankruptcy attorney calmly and comfortably, you can address all issues and avoid technical mistakes.
- Flat-rate – It is important to note that the reason for filing for bankruptcy is due to financial difficulties. Choosing a flat-rate service rather than an hourly rate when choosing a bankruptcy attorney will provide peace of mind. This approach reduces concerns about payment and allows for a more relaxed approach to the process.
- Unique experience – To achieve excellent results that stand out, you need a bankruptcy lawyer who can offer relevant and unique experiences. Choose a board-certified bankruptcy attorney who has successfully handled complex bankruptcy cases. This selection will help ensure that your case is in good hands.
Jeppson Law is the best bankruptcy attorney to contact. We provide friendly, kind, and attentive customer service, allowing you to express your frustrations. We will help put your mind at ease by offering flat-rate legal services. Joseph Chaddick Jeppson is a board-certified bankruptcy lawyer, and we can certainly guarantee excellent bankruptcy services. Get initial consultation now!
Call our Bankruptcy Attorney in Missouri Now!
Are you struggling with overwhelming debt and considering bankruptcy? Take the first step towards financial freedom and peace of mind by reaching out to Jeppson Law! We understand the challenges you’re facing and are here to guide you through the process. Our legal team will attentively listen to your concerns to provide excellent legal services. With our flat-rate service charge, you no longer have to worry about additional expenses.
Call us today to schedule a consultation, where we’ll listen to your concerns and provide compassionate, practical solutions. Together, we’ll pave the way to a brighter and debt-free tomorrow.
We also offer Kansas City, Missouri, the following services: