The Ways You Can Jeopardize Your Protection under the Bankruptcy Laws
When you file for personal or business bankruptcy, an automatic stay goes into effect immediately, prohibiting your creditors from calling you, writing you or attempting to collect debts from you in any other manner than through the bankruptcy proceeding. The automatic stay remains in place for the entirety of your bankruptcy proceeding. There are, however, ways that you can risk losing its protections.
Multiple Bankruptcy Filings in a Short Period of Time
If you file a second bankruptcy petition within a year of a prior filing, the automatic stay for the subsequent filing will only remain in effect for 30 days, unless you successfully ask the court to extend it. If you’ve filed twice in the last year, the automatic stay will never be imposed. The rules apply regardless of whether your prior bankruptcies were completed or dismissed. The court has discretion to extend an automatic stay in this situation, but will typically only do so when there’s evidence of good faith in the multiple filings.
Failure to Abide by a Court Order
You must comply with the terms of a reorganization plan or other court order, and you must take reasonable steps to ensure that any collateral is protected. If you don’t, a creditor can ask the court to lift the automatic stay.
Missed Deadlines for Your Statement of Intention
When your bankruptcy estate includes secured property, you must submit to creditors a statement of intent, advising what you plan to do with the collateral. That must be filed within 30 days of your bankruptcy petition. Missing the deadline may lead the court to lift the automatic stay.
Contact Heath, TX Bankruptcy Attorney Carrie Weir
At the Law Office of Carrie L. Weir, I provide a free initial consultation to anyone with questions or concerns regarding a personal bankruptcy filing. Contact my office by e-mail or call me at 972-772-3083 to schedule a private consultation. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.
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