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Automatic Stay: The magic shield may not be automatic anymore. Part II

by Rachel Lynn Foley, Kansas City, MO, Bankruptcy Attorney on March 11, 2007 · 1 comment · Posted in Automatic Stay In Bankruptcy, General Bankruptcy Information

Do not think that the judge will automatically extend the automatic stay because they are good people.  The judge is not there to give sympathy he/she is there to decide issues of law solely.   You are presumed to have filed the second case in bad faith. It is your job to prove to the judge that this is not bad faith but rather you have stepped up to the plate and changed your circumstances in order successfully complete your case.

Judge Dow in In re: Levens states that the second filing of a bankruptcy within one year is automatically presumed to be filed in bad faith.  You must rebut or show by clear and convincing evidence that the circumstances have changed in order to extend the automatic stay. Unfortunately the debtor did not convince Judge Dow and the stay was not extended.  Now the debtor is scrambling to refinance his house because the creditor has begun foreclosure proceedings.

It is your job to take an active interest in your case.  Ask questions and stay informed about your case.  You will only be successful in your bankruptcy if you get involved and stay involved throughout the entire process of your case.  This is your life, take control and regain financial control.

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Automatic Stay: The magic shield may not be automatic anymore. at Bankruptcy Law Network - Real Lawyers, Real Solutions
March 11, 2007 at 7:21 pm

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