Is Bankruptcy Right For You?
Are you facing foreclosure, wage garnishment, or creditor harassment?
Personal Attention to Every Case
Attorney Matthew Cherney will work directly with you and your family
Enjoy a Debt-Free Future!
Help is only a call away. Read about the benefits of life after bankruptcy

A Bankruptcy Attorney Helping You Move Forward

When repaying your debt seems like an impossible task, bankruptcy could very well be your best option.

Filing for Chapter 7

If your debts have spiraled out of control, you may benefit from filing Chapter 7 bankruptcy. Chapter 7 bankruptcy is frequently called...

Filing for Chapter 13

Many individuals experiencing financial hardship either have too much property or feel a moral obligation to avoid filing for...

Wage Garnishment

If creditors are garnishing your wages or they are threatening to garnish your wages, Cherney Law Firm can stop it.

A Bankruptcy Attorney Helping You Move Forward

At your free, in-person, consultation, we will discuss options related to bankruptcy or some other debt relief alternative. Once we have worked together to come up with the best solution for you, we will exercise a timeline in preparation of your case.

10K

Cases Filed

3

Convenient locations

24 hrs

Turnaround TIme

15+

Years of Experience

Stay Informed

Understand your rights when it comes to filing for bankruptcy and fighting off creditor harassment.

The Power of The Automatic Stay


One of the most important aspects of bankruptcy filing is the automatic stay. We will explore how the automatic stay works for you, as well as the creditors’ option to submit a motion for relief from stay.

How Automatic Stay Work?

As soon as you file for bankruptcy, either Chapter 7 or Chapter 13, the automatic stay goes into effect. The automatic stay keeps creditors from collecting debts during your case. When you or your attorney files, you will include a list of your creditors. These creditors will receive a copy of the automatic stay, which prevents them from taking any debt collection actions against you, such as:

  • Calling you
  • Sending letters
  • Foreclosing your home
  • Suing you for a debt
  • Filing a garnishment on your earnings
  • Continuing a lawsuit
  • Collecting on a judgment

The purpose of the automatic stay is to give you some financial relief while you develop a plan for your finances and repayment. It also benefits creditors who might not receive anything because another creditor collects all the assets first. The bankruptcy process attempts to divide payment fairly amongst creditors.

While the automatic stay provides you some much-needed breathing room, creditors still have options. They may ask the court to lift the automatic stay so they can continue collecting. The next part will cover what this means for you.

What is a Motion for Relief from Stay?

Sometimes creditors will motion for relief from stay. Not every creditor will file a motion. Most will be willing to receive payment from the bankruptcy plan. It is also up to the creditor to provide a credible reason for lifting the stay.

Secured Creditors

Secured creditors may try to lift the stay so they can collect on collateral. For example, when you file for Chapter 7 bankruptcy, the mortgage lender may ask the court to lift the stay if you are behind on your payments. By lifting the stay they can continue the foreclosure proceedings. Since you must either pay or return the property under the secured debt, the court will probably lift the stay if you cannot keep up with the payments.

However, the court may deny the motion for relief from stay if the debtor can show the ability to repay the loan with the asset’s equity. By doing so, the debtor demonstrates that the lender is sufficiently protected from financial loss.
Even when a motion comes forward, there is no reason to fight it if you have no intention of keeping the asset.

Unsecured Creditors

It is unlikely that an unsecured creditor will ask to lift the stay. If your Chapter 7 bankruptcy does not discharge a debt, a creditor can motion to lift the stay. However, since Chapter 7 cases usually last only a few months, most creditors are willing to wait until the end of the case to start collecting again.

In the case of Chapter 13 bankruptcy, according to the debtor’s three to five-year plan, unsecured creditors receive repayment for debts that are not discharged. Since they will receive partial or full payment, creditors have little reason to ask for relief from stay.

How Lien Stripping Works in Chapter 13 Bankruptcy

Bankruptcy is never an easy process. However, it may become the best option for you. In this article, we will explain how lien stripping can work in your favor if you are severely struggling with multiple mortgages. As of now, lien stripping is only possible for Chapter 13 bankruptcy in the state of Georgia, not in Chapter 7 bankruptcy. For a homeowner wanting to save their house during bankruptcy, Chapter 13 will probably be the way to go.

Read more about Chapter 13

Because bankruptcy rules are many and sometimes complicated, it is always prudent to consult an experienced bankruptcy attorney about your choices. They may also be able to suggest alternatives to filing for bankruptcy. Our attorneys will work with your specific situation to determine your best options.

Read More

Bankruptcy and Your Credit Score


What is a Credit Score

A credit score is a mathematical algorithm, typically updated monthly, used by lenders and service providers (i.e. utility companies) to determine your character, creditworthiness, and likelihood to make payments on time.

Read more on:

Read More

Why Bankruptcy Exists


Estimated Reading Time: 3 min

Although bankruptcy has been in existence for 100 years, few understand its true purpose. Creditors owed money may balk and question why bankruptcy exists. As someone considering filing bankruptcy, the reason may be all too apparent.

Why Bankruptcy

The current bankruptcy code was enacted in 1978 as part of the Bankruptcy Reform Act of 1978. This code was a well overdue override of previous bankruptcy codes including the Chandler Act of 1938 and Bankruptcy Act in America from 1898.

Read More

See All Articles

What Are Your Options?

Contact attorney Matthew Cherney and see what your options are when it comes to filing for bankruptcy, or avoiding it all together.

Call Now Button