An automatic stay is an injunction that safeguards you and your property from the creditors. As soon as you file for bankruptcy, the automatic stay comes into effect. Under the stay, the creditor must immediately stop all kinds of collection efforts like house foreclosure, vehicle repossession, and wage garnishment.
Suppose you want to file for Chapter 13 bankruptcy to protect your home from foreclosure. You had already filed twice for Chapter 13 bankruptcy for the same case, previously, which got dismissed due to some bad advice and negligence. So, now, will you be allowed to file for Chapter 13 bankruptcy again? And will the filing for bankruptcy for the third time, automatically create the automatic stay? The answer is yes and no.
Yes, you can apply for Chapter 13 bankruptcy for the third time. However, this time the automatic stay won’t automatically be created. An automatic stay is automatically created only when you file for your first bankruptcy. In the case of a second bankruptcy, the automatic stay lasts only for 30 days, if this bankruptcy is filed within a year of the first bankruptcy. In case you want an extension, you’ll have to file a motion for it and will have to convince the bankruptcy court that you have filed your second bankruptcy in good faith. However, the extension will only be granted during the first 30 days of the filing for a second bankruptcy. Thus, it’s advisable to file the motion for an automatic stay, on the same day of filing the second bankruptcy, under the guidance of experienced bankruptcy lawyers like The Recovery Law Group.
The automatic stay is a ‘use it or lose it’ right. In case you fail to exercise your right of automatic stay during the first two bankruptcies, don’t expect it to kick in automatically the third time. You’ll have to again ask the court to impose the automatic stay by filing a motion. Here again, you’ll have to file the motion to during the first 30 days of filing the third case and will have to convince the court that the case is filed in good faith. Whether your motion will be accepted or not will entirely depend on the date scheduled for a foreclosure sale. If the sale is taking place in less than 30 days, the court won’t approve your motion.
In crucial times like this, it’s important to have an experienced attorney by your side, who can file for the motion along with filing for the bankruptcy, and thus, increase the chances of getting the motion approved before the passing of the first 30 days. You can easily find the best lawyers in Los Angeles and Dallas, TX, for yourself, by visiting https://www.recoverylawgroup.com/ or calling 888-297-6203.