What is a “Motion To Lift the Automatic Stay” (Bankruptcy in Arizona) ?

 A “motion to lift the automatic stay” is sometimes filed by a lender/creditor (usually for a home or vehicle) after a Debtor has filed bankruptcy (most of the time, after filing Chapter 7 bankruptcy).  It is a process by which said lender/creditor obtains the bankruptcy court’s permission to foreclose on real, or repossess personal property (such as a vehicle), that is liened by said lender/creditor.

 The “automatic stay” is the protection that you as a Debtor get when you file bankruptcy. It is what halts all of your creditors. After filing bankruptcy (usually Chapter 7 bankruptcy), for any creditor to take action against you, or a piece of property that you have possession of, that lender/creditor must “lift” this protection by filing a motion with the court.

 A “motion to lift the automatic stay” is usually filed where the debtor, either before or after filing bankruptcy, is far behind on payments for a piece of real or personal property.  It is almost always filed by a lender/creditor where Chapter 7 bankruptcy was filed within a short time before a foreclosure date.

 If you’re considering filing bankruptcy, be certain that you know the effects of the automatic stay in regard to your property.  Remember that all the chapters of bankruptcy are different, and depending on the chapter of bankruptcy you file, your property may be affected differently. This is one of the many reasons why it is important to contact a bankruptcy attorney if you’re thinking about filing bankruptcy.  It is especially important to seek the advice of a bankruptcy attorney who is familiar with the rules in your area (e.g if you’re filing bankruptcy in Arizona, it is important to contact an Arizona bankruptcy attorney).