What is an Automatic Stay?
In the bankruptcy law within the United States, an automatic stay is considered an automatic ruling that stops proceedings by creditors, which are with certain exceptions in order to collect the debts from the nonpayer who has decided on bankruptcy. Under the Section 362 of the United States Bankruptcy Code, 11 U.S.C. 362, the automatic starts at the time when the bankruptcy has been filed. Protected creditors can request the bankruptcy court for assistance from the automatic stay when showing the reason.
What is a motion to lift automatic stay?
This is where the creditor can mail the individual a copy of the document that states Motion “to Lift” or “to Remove” or even “for Relief from” the Automatic Stay, or something along those lines. Section 362 deals with the automatic stay will in many cases is included in the title or somewhere within the document. This motion to lift automatic stay means that the creditor will try to take the property that is listed in the document.
What constitutes a violation of the automatic stay?
There are many actions that violate the automatic stay. The creditors can no longer make calls or send the collection agencies to try and collect the money. Also, the creditors are not allowed to foreclose a home, take wages or recover a vehicle. The creditor may also not be allowed to control any possessions of the nonpayer and the creditor must return all possessions that have not already been sold.
In California, is it a violation for the trustee to list a home on the foreclosure market without getting the automatic stay lifted?
In this case, marketing a property for sale is not considered a violation of the automatic stay. If the trustee actually sold the property then it would be considered a violation, but in fact trying to sell the property is not.
In Utah, how does the automatic stay relate to involuntary bankruptcy that is followed by the filing of the nonpayer?
The main rules that consist of the automatic stay are related in the same way that it is in the involuntary cases. On the other hand, with voluntary cases, the nonpayer who has filed bankruptcy in one year can in fact ask the court to continue the stay.
Automatic stay bankruptcy laws can often be time-consuming and very time’s complex. These laws and regulations can be unknown to someone who has never filed for bankruptcy or to someone who has never needed to file a motion to lift the automatic stay. These questions that arise can be addressed by the Legal Experts online.