Options after Termination of Automatic Stay
Termination of automatic stay means that the “stay” in place to protect you and your property has been terminated for a particular creditor and the collateral secured to the creditor. Whether it be a home mortgage or an auto creditor, immediate action must be taken by the debtor in bankruptcy.
The first option, after the stay has terminated, is to contact the creditor to see if an agreement can be reached to resolve or cure delinquency. Mortgage companies are much easier to workout agreement with whereas auto creditors are a bit more difficult to work with since the collateral is a vehicle that depreciates very quickly.
Whether you reach an agreement with the mortgage/auto creditor or decide to surrender the collateral, you must contact your attorney to modify your bankruptcy plan to provide correct treatment. If these arrears or claim amounts are not removed from the plan then the Chapter 13 trustee will pay these allotted funds to your unsecured creditors.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
