Torrance Automatic Stay Attorney

Protecting Clients Throughout All of Southern California

When you are facing bankruptcy, you may feel like your life is falling apart. You may be worried about losing your home, car, or other property. You may also be worried about the embarrassment of having your financial problems exposed to your family, friends, and other creditors.

At the Law Offices of James C. Shields, we understand that these situations can be stressful and overwhelming. We can help you navigate the bankruptcy process and protect your rights. We have been serving the South Bay and greater Los Angeles area for over 30 years, and we have the experience you need to help you move forward with your life.

Call us today at (310) 626-4404 or complete our form to discuss your case with our experienced bankruptcy attorney in Torrance during a free consultation.

What Is an Automatic Stay?

When you file for bankruptcy, the court will issue an automatic stay. This is an order that stops most collection actions and prevents your assets from being seized. The automatic stay will be issued automatically when you file for bankruptcy and will remain in effect until the bankruptcy court issues an order to lift it.

Can A Creditor Challenge an Automatic Stay?

Yes, a creditor can challenge the automatic stay under certain circumstances. While the automatic stay is a powerful protection for debtors in bankruptcy, it's not absolute.

Creditors can request relief from the automatic stay by filing a motion with the bankruptcy court.

Common reasons for challenging the stay include:

• Lack of adequate protection: Creditors can argue that they aren't adequately protected, meaning that the value of the collateral securing the debt is declining, and they are at risk of losing their investment.

• No equity in the property: If the debtor has no equity in the property and it's not necessary for their reorganization, the court may grant relief from the stay to allow the creditor to proceed with foreclosure or repossession.

• Bad faith filing: Creditors can also challenge the automatic stay if they believe the bankruptcy case was filed in bad faith, solely to delay or frustrate their collection efforts.

The bankruptcy court will consider these challenges and decide whether to lift the automatic stay, allowing the creditor to resume collection actions.

Contact Law Offices of James C. Shields Today

If you have been struggling under the weight of overwhelming debt, filing for bankruptcy may be the right choice for you. We can help you determine which type of bankruptcy is right for you and help you navigate the process.

Call our Torrance automatic stay lawyers at (310) 626-4404 to discuss your options.