Can Creditors Lift the Automatic Stay?

Bankruptcy Attorney Dayton, Oh

 

The automatic stay is one of the best parts of the debt relief process through an Ohio bankruptcy. Preventing creditors from contacting you or making further collection actions, the automatic stay is your immediate breath of fresh air in an otherwise stressful time. However, the automatic stay is a guaranteed permanent court order. In fact, creditors can make a request of the court to lift the automatic stay and resume collections.

 

When It Might Be Lifted

Although there is a chance the automatic stay could be lifted by the court, the good news is that it’s rare. Creditors often don’t have the resources to put forth the effort to approach the courts and request for automatic stay to be lifted.  A court takes into account several issues in determining whether or not to grant a creditor a lift of the automatic stay, including:

  • Whether lifting the order creates unjust prejudice against the debtor
  • If a hardship is placed on the creditor if the protection isn’t lifted
  • The merits and probability of the creditor’s request to lift automatic stay

Due to the variability of such issues and how they apply to your financial situation, it is important to All work with an Ohio bankruptcy attorney. Fighting a court order is no small matter and attempting to take on the system yourself to save money could land you in deeper water than before your automatic stay.

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