If you have a business and you are owed money by a debtor, you will want to know the best options that you have to retrieve this money successfully. Suffering non-payment can have disastrous effects on the cash flow and the overall health of a business. Therefore, it is important that you do what you can in order to address the situation.
If your debtor has filed for bankruptcy recently, it is likely that they will be subject to an automatic stay. This means that as a creditor you will not be legally able to take action against them for the debts that they owe you during this time.
How can I take action to lift the automatic stay as a creditor?
It can be very difficult to override an automatic stay as a credit, but it can be possible if the courts determine that there is a reason to do so. It can be possible for a creditor to override the automatic stay if the debt in question has little or nothing to do with the reason for the bankruptcy filing.
How is the motion for relief from the stay achieved?
You can file for a motion for relief from the automatic stay by showing that there is a cause. You may argue for example that the value of the property is rapidly declining and therefore you as a creditor is set to suffer disproportionately. You can also argue that taking action on the debt will not affect the debtor’s ability to successfully go through the bankruptcy process.
If you want to recoup unpaid debts as a creditor, you should make sure you understand the law in Georgia.