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

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


Magic of the Automatic Stay

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 stated In re: Levens that the second filing of a bankruptcy within one year is automatically presumed to be filed in bad faith per 11.USC §362(c)(3). 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.

Remember that knowledge is power. The more knowledge you have about the automatic stay the power you will have to enforce the automatic stay.

Automatic Stay Magic Part I.

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Former Bankruptcy Attorney to the Kansas City UAW: Ford and GM workers, now assisting the general public in Missouri and Kansas with regaining financial control using the Bankruptcy Code. 816-472-HELP (4357).

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