Roseville Bankruptcy: Automatic Stays in Multiple Bankruptcies
Multiple bankruptcy filings in a single year create an assumption that your filing is in bad faith. For this reason, a second filing earns only a 30 day automatic stay unless you make a showing of evidence that your filing was in good faith.
If it is not your first bankruptcy filing of the year and your first filing was dismissed for failure to provide required documents without an excuse, the court will often assume bad faith and limit your automatic stay. This is especially true if your financial situation is unchanged from the prior filing. Keep in mind, a Chapter 13 that is forced into becoming a Chapter 7 filing is unaffected by this rule.
Lastly, if you have more than two filings in a single year, the court will refuse your automatic stay completely. To earn the stay, in these cases you must prove to the court that this bankruptcy is in good faith and request a stay from the court. Since you lack the automatic stay in these circumstances, take care not to wait until the eve of a foreclosure or repossession or it may be too late. These important issues deserve the time for you to come into Sagaria Law’s Roseville office for an initial consultation; schedule yours now.