Legal Question in Bankruptcy in California
Relief from Motion of Stay
We recieved a relief from motion of stay and it was granted a week before our dishcharge was granted why is that? Is it possible they are looking into possible fraud and if so when would you be made aware of their intentions or is it for another reason? We recieved the discharge and we asumed this was included as we did not recieve any notice from the court that it was not and it is reporting on our credit report as discharged.
3 Answers from Attorneys
Re: Relief from Motion of Stay
If you maintained a current address with the bankruptcy court, you should have been sent notice of the motion. If there are grounds to oppose the motion, you might retain an attorney to try to set the court's decision aside, since you didn't know of the motion.
Usually, secured creditors such as home or auto lenders, or a landlord, will bring such a motion if you're behind on payments. It doesn't necessarily have to be because of fraud.
Re: Relief from Motion of Stay
A motion for relief from the automatic stay is filed by a creditor who does not want to wait until the case is closed (and the stay is lifted automatically) in order to proceed with a repo, foreclosure, etc. It has nothing to do with dischargeability of a debt.
What has happened in your case is that the creditor's attorney figured out a way to bill his client for relief one week sooner than the client would have received it anyway (it happens all the time).
Re: Relief from Motion of Stay
I am assuming a creditor obtained the relief, alleging fraud. The Petitioner however may still obtain relief and a discharge, assuming the remaining creditors do not follow suit.
Good luck
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