Companies that provide financial services to consumers may take on a certain level of risk in the process and they may incur significant losses if debtors fail to meet obligations. Should a debtor choose to file bankruptcy, creditors in Georgia may worry that there might be little they can do to protect their interests due to the presence of the automatic stay. However, there may be some scenarios in which the stay can be lifted, and knowing how to tell if filing a petition for relief of stay might be a viable option may be vital to preparing to protect a company’s interests.
Relief from stay
Creditors that encounter a similar situation may retain the right to file a petition with the court for relief of stay. If the court approves this request, the stay may be lifted and the company may retain the right to resume collection attempts. There may be various scenarios in which filing such a motion might be a viable option, such as those involving secured debts such as mortgage loans.
There may be a multitude of factors that might influence whether the court will approve such a petition and understanding this aspect of the process could be integral. Creditors may also benefit from knowing every step to take when filing a motion for relief of stay, as failure to adhere to bankruptcy laws could prove detrimental. There may also be some situations in which the automatic stay might not persist through every stage of the bankruptcy process and should this occur, a relief of stay might not be necessary.
Rights and options
When facing a similar situation, creditors may have questions about whether a relief of stay petition might be a viable option to help protect company interests. Companies in Georgia that remain uncertain of how best to approach this process could consider retaining the services of an attorney for guidance on their legal rights and options. An attorney can assess the situation a client is facing, provide insight on every aspect involved with filing a relief of stay, and assist in preparing to take every possible measure to safeguard the interests of the company.