How can I file a motion to extend automatic stay?

The automatic stay that is granted when you file for bankruptcy is one of the most important protections offered by the bankruptcy law. It is provided to offer help to the person who is filing for bankruptcy. The stay starts as soon as the paperwork is filed, and it provides an automatic hold on all collection efforts by creditors so that the individual filing for bankruptcy can get his finances together or proceed with the bankruptcy without being unduly harassed by creditors.

The automatic stay can even stop foreclosure or repossession. However, this hold is not always a long enough period of time to get all of your financial affairs in order when you are filing for bankruptcy, so you may have to file a motion to extend the automatic stay. Filing a motion to extend automatic stay will help you to get extra time to escape dealing with collection calls, repossessions or other collections efforts.

Filing for an Extension

The main reason to file for automatic stay is if you have filed for bankruptcy and had your case dismissed previously in the last year. In these cases, because of changes to the bankruptcy code in 2005, only 30 days is given automatically when the court considers your case. Since this is rarely enough time, filing a motion to extend the automatic stay often becomes necessary. If you find yourself in this position, you will need to file this motion as soon as you file for bankruptcy, as the stay will only extend for 30 days when it is automatically assigned by the court. You also need to follow the specific process for requesting an extension of the stay:

• The first step to filing a motion for an automatic stay is to fill out the appropriate form in federal bankruptcy court and to submit it to the court as part of your initial filing. 
• After you have filed the form, you will need to have it approved by the court. This may take time as the court will want to examine your previous bankruptcy filing and why it was dismissed in order to make sure that you are not a “serial bankruptcy filer,” or someone who constantly files bankruptcy and asks for stays to get protection from creditors. 
• Once it has been determined that you have legitimate reason for any previous bankruptcies as well as a legitimate reason for the need for an extended stay--such as a change of circumstance like loss of a job or death of a spouse--the extended stay will either be approved or denied.

The automatic stay helps you because it allows you breathing room to continue going about your life and attempt to get your finances in order without having to worry about issues like creditors repossessing your car, putting your home into foreclosure, or harassing you via telephone or other means. This is an important issue for piece of mind, to help you get your life back on track during and after a bankruptcy proceeding.

Getting Legal Help

If you are going through a bankruptcy filing, especially if you need to request an extension to the automatic stay, you should strongly consider getting legal help. Your attorney can assist you in understanding the requirements and filing process and can help you with all steps of your bankruptcy filing.