What is a motion to lift stay?
Once your case is filed, the automatic stay takes effect. The automatic stay prevents all collection actions, including repossession and foreclosure. If you do not intend to continue making payments to a car lender or mortgage lender, they may wait until the after your case is over to repossess or foreclose or they may file a Motion to Lift Stay (MTLS). The MTLS is a request that the court allow the lender to move forward with a foreclosure during the bankruptcy. More often than not, the MTLS is an invitation to settle the amounts you’ve fallen behind on after we filed your case. if you wish to make arrangements to keep the car or house, Mike can make arrangements for you to pay (over a few payments or more) the amount that you are legitimately behind on your post-bankruptcy mortgage payments. In my experience, the lender always wants to settle by making an arrangement with you and then we file what is called a “stipulated order” which means we have resolved the motion without the court granting the motion and then you continue on as usual. If for some reason, we cannot workout the difference, you have 2 options: (1) fight the motion; or (2) not contest the motion and let the lender win, which would mean your house would go into the foreclosure process and you would have another 7-8 months in the house before having to vacate.
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