Is there Automatic Stay protection for Debtor when there are Multiple Bankruptcy Filings?
First, it depends on whether the prior bankruptcy case was dismissed or successfully discharged. If the prior bankruptcy case was dismissed, is the current bankruptcy filed within 365 days from the date of dismissal of the prior bankruptcy case?
If yes, how many bankruptcy case was dismissed within the last 365 days? If only one bankruptcy case was dismissed within 365 days, then automatic stay of the current bankruptcy case is limited to 30 days of the date of filing unless a Motion to Extend Automatic Stay was granted by the Bankruptcy Court. If no bankruptcy case was dismissed within the 365 days but it was successfully discharged, then the automatic stay in the current case is not limited to 30 days.
However, if two or more bankruptcy cases were dismissed within 365 days, there is no automatic stay except if the prior bankruptcy case was dismissed due to 707(b) for abuse. You may try to request the court to grant automatic stay but until then there is no automatic stay.
Automatic Stay is important because it stops creditors from pursuing collection activities. Some clients file Chapter 13 Bankruptcy because automatic stay would prevent foreclosure while they try to repay their mortgage arrears within a 5 year payment plan. Automatic Stay has other uses like preventing car repossession, IRS tax debt levy or wage garnishment while debtors restructure their debt payment in a Chapter 13 Bankruptcy.
For more information, call Muoi Chea experienced Sacramento Bankruptcy Attorney. She accepts clients throughout Northern and Central California, such as Elk Grove, Citrus Heights, Vacaville, Fairfield, Stockton, Tracy, Modesto, Vallejo, Benicia, Lodi, Galt, Roseville, Woodland, CA and surrounding cities.