Lifting an Automatic Stay in Maryland Bankruptcy Court
When someone files for bankruptcy, a court-ordered “automatic stay” prevents creditors from continuing any collection efforts. This is designed to give a person breathing room to get on top of their finances and find debt relief. If you are a creditor, it may be necessary to lift the automatic stay to make sure you protect your investment from further loss.
You may file a motion with the court requesting that they lift an automatic stay and allow creditors to resume collection efforts.
Our firm can file a motion with the court requesting that they lift an automatic stay and allow creditors to resume collection efforts. To do this, you have to meet certain requirements in order for this motion to be considered. 1. You must show there is a lack of adequate protection of an interest in property (e.g., no equity in a home for foreclosure cases) and 2. The property is not necessary for an effective reorganization of the debts. The party requesting the lift has the burden of proof on the issue of the debtor’s equity in property, and the person in debt has the burden of proof to show to property is necessary for reorganization.
Lifting an automatic stay is a complicated process that requires you to file a motion with the court. It is always recommended you have an experienced attorney do this. As a firm that focuses on Maryland foreclosure, we have made it an essential part of our business to finish the foreclosure process from start to finish, including any bankruptcy hiccups. If you are a private lender looking to foreclosure on a property, please give The Law Offices of Ruben and Ruben a call at (240) 641-8572 or go to [RubenAndRuben.com].