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  1. #1
    Join Date
    Jun 2006
    Location
    Jacksonville, Florida
    Posts
    27

    Default Motion for Relief of Automatic Stay

    My question involves bankruptcy in the state of: Florida

    I filed chapter 7 not to long ago and just had a meeting of creditors. None of them showed and the meeting was over quickly. Today I received a motion for relief from automatic stay from my mortgage company in the mail. In the bankruptcy petition I put I wanted to surrender the property. $120,000 is owed on the mortgage and the property is valued at $40,000.

    The motion reads:
    Wherefore, [mortgage company's name], prays that this honorable court will enter its order granting relief from stay, award reasonable fees and costs, and that the fourteen days stay of the order granting relief pursuant to bankruptcy rule 4001(a)(3) is waived and grant such other relief that the court may deem just and proper.

    Is this just so they can proceed with the foreclosure? If so I am fine with that, I just want to get rid of the hone. My concern is the deficient balance not being discharged. I an also concerned about the line reading ” award reasonable fees and costs”. What does this mean? Am I going to have to pay their court costs and legal fees?

    Thanks.

  2. #2
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Motion for Relief of Automatic Stay

    Standard stuff to get the property removed from the protection of the bk. Nothing for you to do or worry about. All the lender wants/gets is the property.

    Des.

  3. #3
    Join Date
    Jun 2006
    Location
    Jacksonville, Florida
    Posts
    27

    Default Re: Motion for Relief of Automatic Stay

    Ok, so the debt will still be discharged but the bank is just speeding up the process of foreclosing on the property? And the line about reasonable fees and costs is not something coming out of my pocket?

  4. #4
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Motion for Relief of Automatic Stay

    Yes, they are trying to foreclose before the final discharge. Your responsibility will be discharged (provided you didn't do something will stop this). The "reasonable fees" is coming out of the general funds that are disbursed to debtors (the lawyers get fairly high priority in this stuff).

  5. #5
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Motion for Relief of Automatic Stay

    Quote Quoting kawilkes
    View Post
    Ok, so the debt will still be discharged but the bank is just speeding up the process of foreclosing on the property? And the line about reasonable fees and costs is not something coming out of my pocket?
    1. The bank is not "speeding up the process of foreclosing". It is simply getting the property removed from the protection of the bk so that it can either start or continue the process as allowed under State law.

    2. The language regarding attny fees is "boiler plate" and has no meaning other than it is a form pleading that was filed. You will not be responsible for any legal fees and any legal fees incurred by the lender will simply be part of the "credit bid" at the foreclosure, if the credit bid given by the lender matches the amount owed. (Hope that made sense.)

    Des.

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