Automatic stays are like a blessing for many individuals struggling to pay their bills. This temporary order prevents creditors from trying to collect debts from you while you’re going through bankruptcy.

 As the old adage goes, nothing lasts forever. What happens when your automatic stay gets lifted? Will your creditors immediately start coming after you again? Learn what to expect after an automatic stay gets lifted below.

What to Expect When Your Automatic Stay is Lifted


Automatic stays are temporary. Depending on your situation, creditors may try to file a motion with your bankruptcy court to have the stay removed. If they’re successful, then they can move forward with their collection methods. That also means that your property will no longer be considered safe from your creditors.
Keep in mind that a courtroom takes automatic stays very seriously. Bankruptcy courts are not likely to lift a stay if you can prove that you’re financially struggling. The court must have a clear, valid reason for lifting the stay. Courts are more likely to lift a stay when your debt can’t be discharged with bankruptcy, which is the case with:
  • Debt from criminal restitution
  • Spousal support payments
  • Back child support payments
  • Rent payments accumulated since filing for bankruptcy


 When a stay gets lifted, your creditor can resume collection proceedings. That means they may attempt to repossess your property.

Do You Have More Questions About Bankruptcy?


Filing for bankruptcy is a last resort, but it’s a lifeline that you should grab onto if you need it. Automatic stays are meant to pause collection proceedings while you work out your financial difficulties with your creditors and the court. They won’t last forever, though, so you need to use your time wisely if you’ve been granted an automatic stay. 

 

Are You Considering Filing For Bankruptcy? If you feel bankruptcy is the best option for your financial situation you need to speak with an experienced bankruptcy lawyer as soon as possible. Please contact us online or call our office directly at 888.348.2616 to schedule your free consultation.

Are You Considering Filing For Bankruptcy?

If you feel bankruptcy is the best option for your financial situation you need to speak with an experienced bankruptcy lawyer as soon as possible. Please contact us online or call our office directly at 888.348.2616 to schedule your free consultation.

James Roswold
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James Roswold is a Kansas & Missouri personal injury, workers comp, and medical malpractice attorney.