| Secured Creditors and Relief From The | | | | that point, you likely be free from any |
| Automatic Stay | | | | future obligation toward the creditor. |
| | | | |
| In certain circumstances, a secured creditor | | | | The Bankruptcy Estate |
| can move the court for modification of the | | | | |
| automatic stay so that they may pursue | | | | What is the bankruptcy estate? The bankruptcy |
| recovery of their collateral. For example, an | | | | estate is all of your property as of the date |
| auto finance company can petition to the | | | | of the bankruptcy filing, wherever located |
| court to modify the automatic stay if you are | | | | and by whomever held. Every possible interest |
| not making current payments toward the | | | | (contingent, partial, legal or equitable) |
| creditor, if you are not up to date with the | | | | goes into the bankruptcy estate. Although |
| creditor or if you are not properly insuring | | | | there are exemptions which allow you to keep |
| the vehicle against loss. In those cases, the | | | | all or a portion of your property, the |
| creditor will be granted its relief and will | | | | property is still technically considered |
| be permitted to recover the collateral | | | | property of the estate. |
| despite the bankruptcy filing. In a Chapter 7 | | | | |
| bankruptcy case, you will lose the right to | | | | The concept of the estate applies to property |
| possess and own the vehicle; however, you | | | | owned at the time of filing. Most of what you |
| will not be responsible for any outstanding | | | | acquire after the date of filing will remain |
| debt related to the vehicle. This could be a | | | | your property. However, there are a few |
| tremendous relief for you by eliminating a | | | | exceptions to this general rule. |
| huge vehicle loan obligation. | | | | |
| | | | If you inherit money or property within six |
| As it relates to real estate mortgage | | | | months after your case is filed, that money |
| companies, the same situation as above | | | | or property will become property of the |
| applies. The lender will petition the court | | | | estate to the extent that it cannot be |
| for relief if you are not making timely | | | | exempted. |
| payments, if you are not current with the | | | | |
| loan, if you are not paying the real estate | | | | If you receive a marital property settlement |
| taxes on the property or are otherwise | | | | that arises from a pre-bankruptcy divorce or |
| creating a hazard or risk to the lender. | | | | separation, then that property becomes |
| Thus, in a Chapter 7 bankruptcy case, the | | | | property of the estate to the extent that the |
| automatic stay will only provide temporary | | | | property cannot be exempted. |
| relief to you as it relates to secured | | | | |
| creditors. As far as general creditors and | | | | Tax refunds that are received after the date |
| unsecured creditors, the automatic stay may | | | | of filing become property of the estate to |
| continue until the case is discharged. At | | | | the extent that they cannot be exempted. |