Why Stay in the Bankruptcy?
One of my clients is a multiple filer, and we had to file a motion to impose the automatic stay. The motion was denied, and the Debtor never made his appointment to discuss his options. Now, the day his paperwork is due, he calls the office and decides he wants to stay in the bankruptcy to protect his car and his rental property.
I explain that since the Judge denied his motion to impose, there is no stay in place and we cannot protect his cars and rental property. The only way he will be allowed to pay the creditors in the bankruptcy is with a signed agreement from the car creditors and the mortgage company. He also has some outstanding IRS debt, and the IRS has to agree to be paid through the bankruptcy.
Debtor doesn’t understand what the point of being in bankruptcy is if he doesn’t have any protection. I have explained to him every time I have met with him that if the Judge didn’t grant the motion to impose the automatic stay he would have no protection of the bankruptcy. He also has the obstacle of the Trustee has filed a motion to dismiss his case with prejudice for being a serial filer. If the Trustee’s motion is granted, he would not be allowed to file another bankruptcy for at least 180 days.
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