When companies provide consumers with opportunities for lending, they may do so with the intent of receiving payment for funds rendered. However, things don’t always go as planned and sometimes those who fall behind on obligations may seek debt relief and protection from creditors through bankruptcy via the automatic stay. While this aspect of bankruptcy may impact collection efforts, creditors may retain the right to pursue payment by filing a motion for relief of stay.
Relief of stay
The automatic stay is a part of bankruptcy that kicks in as soon as a bankruptcy petition is filed. Once this is in place, creditors are required to cease contact and collection efforts until the bankruptcy filing is finalized. However, creditors may have the option to file a motion for relief of stay, which may help lift the protections provided by the automatic stay and allow creditors to resume contact.
It may also be helpful to know that there are certain scenarios in which the automatic stay may only last for up to 30 days after the initial filing, and in these cases, a motion for relief might not be necessary. Creditors may also benefit from seeking insight on what types of information to include when filing a motion for relief and on the requirements involved with such endeavors. There may also be certain fees associated with filing such a motion and understanding every aspect of this process could be integral to choosing the best path forward.
Company interests
While a motion for relief could prove a viable option in certain scenarios, knowing how best to approach a similar process can be somewhat complex in nature. Fortunately, there are attorneys in Georgia who can provide a company with insight in covering every essential component involved with the process. An attorney can work with a client in addressing the situation at hand and help choose a path that best aligns with the needs and interests of the company.