Question:
If a debtor files multiple bankruptcies under the new bankruptcy code can a creditor such as a mortgage company continue with a foreclosure even though at the time of sale their was an active bankruptcy with no relief of stay or order allowing the mortgage holder to foreclose?
Answer:
You must file a motion to extend the automatic stay if you only have a 30 day stay. You would have to show the court why your current bankruptcy case is different form the others. If the stay was extended or you were not given a 30 day stay, the mortgage company would have to get relief from the automatic stay to start foreclosing.
three strikes and your out
If the mortgage company files a motion to remove automatic stay and wins - they can foreclose and the debtor can do nothing about it. The above poster's motion to extend automatic stay would be moot - the creditor has more leverage than the debtor in this circumstance.
I am a bankruptcy attorney and Whuff is essentially correct. Nonetheless, most creditors will take the cautious approach and file a motion for relief from stay anyway.
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