Legal Question in Bankruptcy in Georgia

Re: Relief From Stay

A motion for relief from stay filed by a creditor is a prerequisite to the initiation of state law recovery actions against property that is part of a bankruptcy estate. Depending on how you react to that notice of hearing (file a response, appear, fail to appear, etc.) that hearing may be simply a perfunctory showing that the creditor has reason to have the house excepted from the protective stay. If the judge agrees to lift the stay it will be effected by an order which may come down at the end of the hearing or in the few days following.

If the court orders that the stay be lifted � then the lender has the green light to begin any state law action regarding the house. This most likely means foreclosure � and the normal process for foreclosure (acceleration of the debt, notice of foreclosure, advertising in the legal classifieds of the legal newspaper in the county in which the house is located, etc.) can be started (even if it was underway at the time of the bankruptcy case filing in July, it needs to be started all over again, it does not pick up at the stage it was at when the bankruptcy case was filed). A world�s record from initial steps to actual foreclosure sale would be shy of 40 days. Lenders are besieged with foreclosure activity and unless they are right on top of it and hit all the deadlines for placing advertising, etc., it�s more likely to be closer to 60 days. All of this will depend on specific details of your situation which you should discuss with your GA licensed attorney.