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socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 38801
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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Relief from Chapter 7 BK Stay

Resolved Question:

We are a small auto finance company. We have a customer who has filed for Chapter 7 BK. He has refused to sign a reaffirmation agreement for the last 60 days. How do we file for and obtain a relief from stay? Thanks!
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 6 years ago.
When you say "small auto finance company," do you mean LLC, Inc., LLP, or ____?
Customer: replied 6 years ago.
LLC
Expert:  socrateaser replied 6 years ago.
Hello,

You won't like this answer, but at least by my telling you here and now, you won't be led on a wild goose chase by someone else.

It will be of no assistance whatsoever for me to walk you through the process of filing for a relief from stay in federal court, because only a "natural" person, who is not an attorney, may represent themselves in court. Your LLC, as an independent legal entity, must be represented in federal court by a licensed member of the Utah State Bar.

If you attempt to file the paperwork on your own, without a lawyer, the court will strike the motion for relief as the illegal/unauthorized practice of law.

Your LLC must hire a lawyer to obtain relief from the bankruptcy stay. For a bankruptcy attorney referral, see this link.

Hope this helps.

NOTICE: My goal here is to educate others about the law. I am always available to answer your follow-up questions after you click Accept – however, if you do not click Accept, the website gets paid, and I receive nothing. This is true, even if you are on a subscription plan. So please click Accept, so that I will be able to continue to provide this service for others in the future.

Customer: replied 6 years ago.
Can we just wait for the stay to expire? How long is it normally in effect? Does he have to sign the reaffirmation agreement before the hearing scheduled in June?
Expert:  socrateaser replied 6 years ago.
Yes, your secured interest will "ride through" the bankruptcy. However, if the debtor attempts to "unsecure" the claim through some adversarially court action in bankruptcy, then you will need to either defend, or you may lose your secured interest.

If the debtor has listed your debt as a claim, and the claim as listed is satisfactory to you, then you can avoid filing a proof of claim (by doing so, you would force the court to give you a jury trial if the debtor tries to unsecure the debt). Or, at your option you can file a proof of claim with the bankruptcy court (and without a lawyer), and while you will give up your right to a jury trial, you will be automatically notified of anything to do with your claim, even if the debt is not scheduled.

A Chapter 7 takes about 120 days to complete. It could take longer or shorter, but four months is pretty typical.

Hope this helps.

NOTICE: My goal here is to educate others about the law. I am always available to answer your follow-up questions after you click Accept – however, if you do not click Accept, the website gets paid, and I receive nothing. This is true, even if you are on a subscription plan. So please click Accept, so that I will be able to continue to provide this service for others in the future.

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