When you file a petition for bankruptcy, your case will immediately see the effects of an automatic stay. Whether you qualify for Chapter 7 liquidation bankruptcy or choose to file for Chapter 13 bankruptcy, you can benefit from the court-ordered halt to creditor action that takes the form of an automatic stay. The power of an automatic stay can provide a wide range of advantages to the filer in addition to its ability to prevent creditor harassment and further missed debt payments. Halting wage garnishments, evictions, foreclosures, and more are possible under the restrictions of an automatic stay. With the help of a Behm Law Group, Ltd. bankruptcy attorney in Marshall, MN, you can successfully navigate the rest of your case.
While the benefits that an automatic stay provides are numerous, there are some circumstances where it doesn’t apply. Primarily, you cannot receive the full benefits of an automatic stay if you’ve filed for bankruptcy more than once within a year.
- Limited Automatic Stay Period: If you’ve filed for bankruptcy once before in the same year, you will have an automatic stay period limited to 30 days the second time you file. This is because the court will assume your second case is filed in bad faith and may be dismissed. With the help of Behm attorneys, you may be able to prove your good faith to the court and receive the full automatic stay period for the creditors you need to prevent from collecting.
- No Automatic Stay Applied: You will not be granted any automatic stay period if you have already filed twice or more in a year and then file again. With three or more bankruptcies, the court still presumes that you’re filing in bad faith and will not provide a stay to halt any of your creditors. Again, you can work with our attorneys to prove your case is not in bad faith with accurate and plausible evidence.
If you have the evidence to prove your bankruptcy case is filed in good faith, our attorneys will work to draft your motion for requesting that your automatic stay be granted in full. You may not be granted the stay if your previous case was dismissed because you failed to file certain documents or if your financial situation has not changed since the last time you filed. Additionally, if you’ve filed for bankruptcy within the year and now choose to file jointly with a spouse, the restrictions on an automatic stay apply only to you.
If you aren’t granted an automatic stay in your bankruptcy case, your best means to successfully file for bankruptcy is with the help of a professional attorney. Without the stay, creditors can continue to collect debt payments and may even attempt to take action against your property. To get the help and support you need when you file for bankruptcy, contact Behm Law Group, Ltd. at (507) 387-7200 and get started today with an expert bankruptcy attorney in Marshall, MN.