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i want to talk for a minute about the dynamics of my any lender seeks relief
from st
in bankruptcy to continue
a foreclosure action
so let me first of all over
the pas that basic seven arnet ecstatic
went bankrupt his file
a the court
automatically immediately imposes
they say or freeze
on everything no calls no letters
lawsuits including foreclosures all stopped at the sale of the property is
scheduled for the next day
is cancelled
so everything is frozen
now one of the things that lenders hindu is they have asked the court for what we
call relief
from the automatic stay
they can ask the court for permission
to go forward with their foreclosure action
entity that is not typically always it's done by the filing uh... a motion for
relief from stay
and in that motion that has what we call
in bankruptcy law and negative notice
and that means that when the motion is filed
you have
twenty days to object
to the motion and if you don't think judges automatically going to grant
the relief requested it
typically invade
bankruptcies scenario
what happens is the lender will filed a motion for relief from say
and say
well they're not trying to recover any muddy from the debtor
they merely want to go forward with the foreclosure
it is a general rule nobody objects
to those motions for relief from stay
court automatically enters the order allowing them to go forward
so the
delay in the foreclosure caused by the bankruptcy becomes
very minimal
maybe almost worthless if that's what the bankruptcy was filed to do
however there are objections to the relief obstet
that the changes to the law in two thousand five
made getting really from say more restrictive
in the law says that there has to be two things
there has to be a showing that the bankruptcy was done to hinder or delay
or to defraud the creditor
hand
that the jeter has engaged in multiple bankruptcy filing
in other words every time something is about to happen on the property they go
back and file another bankruptcy
so the law requires that both of those things exist
and gently were in the first bankruptcy filing with the person
instead of the u_s_ all we have
so we can immediately go and of course there will be a jack
because
that they do not need to that second criteria there have been no
multiple bankruptcy filings
irrespective of whether
they can arguably say that the bankruptcy was done
hinder or delay the lender from proceeding with the rent
so the law says a bright line test
that both of those criteria is must be met
and if they're not
then the creditor is not entitled to relieve wednesday and you get the full
benefits
of the delay
than a bankruptcy filing
we're looking for is intended to bring about