What is a Relief from Stay?
A San Jose bankruptcy attorney addresses "What is a Relief from Stay?"
Filing for any chapter of bankruptcy (7, 9, 11, 12, or 13) creates an automatic stay against most kinds of legal actions against the debtor and the debtor’s property, such as foreclosures, lawsuits, and garnishments. The automatic stay lasts the life of the bankruptcy.
When a creditor desires to seek judicial remedies against the debtor, he, she, it must file a motion with the bankruptcy court seeking leave from the automatic stay. The creditor must prove to the court that the creditor’s interest in the particular property is not adequately protected. This property generally includes foreclosure on a home or repossession of a car.
When a relief from stay is granted, it does not mean remove that property from the bankruptcy estate nor does it grant the creditor ownership of the property. It simply removes the stay which had been placed and gives the creditor its state’s rights to collect. Most often, relief motions are granted because the debtor simply cannot afford the monthly payments based upon their petition or they are so far in arrears that the debtor cannot make the creditor whole again.
If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!
