What does motion to extend automatic stay Mean?
The stay requires creditors to cease actions against the debtor and the debtor’s property as described in 11 U.S.C. § 362(a). The stay continues until either the case is dismissed or closed or, in an individual case, until the granting or denial of discharge.
How long does the automatic stay remain in effect?
Duration of the automatic stay Since a Chapter 7 bankruptcy case generally only lasts a few months, the automatic stay will end when the discharge is ordered. Most non-secured debts will be discharged in a Chapter 7 bankruptcy, and those creditors will not be able to try to collect on the debts after the discharge.
What activities are not subject to the automatic stay?
Domestic proceedings, such as dissolution of marriage, domestic violence, paternity actions and actions for domestic support or child custody or visitation actions. Withholding, suspension or restriction of a driver’s license or recreational or occupational license for failure to pay support obligations.
What is a stay violation?
Stay violations occur when a creditor takes actions that are prohibited by the automatic stay provision of the bankruptcy code, which is found at 11 U.S.C. § 362. “As a general rule, the filing of a bankruptcy petition operates as a stay against actions affecting the property of the bankruptcy estate.
Who does the automatic stay apply to?
1 The automatic stay applies to individuals, to businesses, and to all of the chapters of the Bankruptcy Code. The automatic stay does not apply to non-debtor entities, such as corporate affiliates, corporate officers, co-defendants, or guarantors.
What is the effect of a discharge on the automatic stay?
When the debtor gets a discharge, the automatic stay is replaced by a permanent injunction prohibiting creditors from all of those actions with respect to discharged pre petition debts that the automatic stay prohibited.
What is a consequence of violating the automatic stay?
Attempts to repossess property, suits in court and other actions taken in violation of the automatic stay are generally void. In other words, they are given no legal effect. For example, normally, when a person defaults on a car loan, the lender may repossess the car.
When to file a motion to extend an automatic stay?
So, if you are filing a second bankruptcy case under Chapter 13 where a prior case was dismissed within the last year, you must bring a Motion to Extend the Automatic Stay within 30 days of filing, otherwise the Automatic Stay will expire 30 days after filing, putting the debtor at risk.
Can a bankruptcy court extend the automatic stay?
The timing here is critical because the dates matter and if you missed that date by a day, the court cannot extend the Automatic Stay. Without the Automatic Stay being extended, your client or the debtor is at risk of having property repossessed, or being collected upon in certain circumstances.
What happens if an automatic stay is not extended?
What this means to a debtor is that a secured creditor, in many cases a vehicle or a mortgage company, can pursue the collateral or pursue the debtor if the Stay is not extended. There are some judges that feel that the Stay is extended only to the debtor, others feel only to the debtor’s estate and others feel towards both.
How to lift the automatic stay in Chapter 7 cases?
To do so, you must file a motion and prove to the court, by clear and convincing evidence, that you filed the most recent case in good faith.