Legal Question in Bankruptcy in Texas
Chapter 7 Bankruptcy protection?
can filing a chapter 7 bankruptcy stop a storage unit from auctioning off your possessions for an unpaid bill? The bill has been due over 90 days. the party was notified that the items would be auctioned on jan 23.they claim the bankruptcy was taken out on jan 22. does presenting a copy of the chapter 7 bankruptcy paper stop the disposal of the items to cover the unpaid bill? i am the grandmother willing to pay the bill to obtain my grandchildrens clothing and personal items.the children do not live with the mother. can this be done? the unit is in my daughters name.
thank you for you help,
mary
1 Answer from Attorneys
Re: Chapter 7 Bankruptcy protection?
All debts should be "stayed" or stopped upon the filing. If they auction off the items they would be in violation of the automatic stay that is initiated at the filing of a bankruptcy petition. The storage company has the right to file for relief from this automatic stay and if they do so, notice would be given.
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