April 21, 2020
Oftentimes, creditors are faced with an individual who elected to file a bankruptcy in the Central District of California. The filing of a bankruptcy effectively halts any attempts to collect against (or sue) that person. In order to proceed with collection actions, the creditor is required to file a Motion for Relief from the Automatic Stay in the Central District of California. The failure to do so can result in many problems for the creditor.
What is a Motion for Relief from the Automatic Stay?
A Motion for Relief from the Automatic Stay is a motion filed by a creditor in a bankruptcy case. The creditor asks the bankruptcy Court to give that creditor authorization to proceed with some enforcement action against the debtor. For example, if a debtor does not make his/her mortgage payments, the creditor can file a Motion for Relief from the Automatic Stay before the creditor can proceed with foreclosure of the home. Additionally, landlords who are in the middle of eviction may be faced with a tenant who filed a bankruptcy. Those landlords will need to file a Motion for Relief from the Automatic Stay before the eviction can resume. Lastly, a plaintiff may face a defendant filing for bankruptcy in the middle of a lawsuit. In order to proceed with the lawsuit, the Motion for Relief from the Automatic Stay would have to be filed.
What if a Creditor Does Not File a Motion for Relief from the Automatic Stay in the Central District of California
A creditor’s decision to proceed with collection efforts against a debtor who filed a bankruptcy, without filing a Motion for Relief from the Automatic Stay, can result in significant sanctions against the creditor. This is especially true if the creditor knew of the bankruptcy and proceeded regardless of that knowledge.
I am a Creditor and Need to File a Motion for Relief from the Automatic Stay in the Central District of California. What Should I Do?
If you had you collection efforts delayed due to the filing of a bankruptcy by a debtor in the Central District of California, you should take immediate action and consult with an attorney to determine how you can seek authorization from the Central District of California bankruptcy court so that you can proceed with your collection efforts. Contact our qualified attorneys at Katz Law now! We have handled hundreds of Motions for Relief from the Automatic Stay in the Central District of California.
Consult With A Qualified Los Angeles Attorney Now!
If you are thinking about filing a bankruptcy and you own a home, contact our qualified attorneys at Katz Law now! We are California attorneys located in Los Angeles who have filed hundreds of Motions for Relief from the Automatic Stay. Call us now at (310) 444-9444.
