When you are in either Chapter 7 or Chapter 13 bankruptcy, an alleged creditor may attempt to lift the automatic stay (so they can sell your house or other property). There are a number of legal challenges that can be raised to prevent your alleged creditor from being successful in lifting the stay in bankruptcy court. Some of the possible challenges that can be litigated in the bankruptcy court are:
(1) Alleged creditor cannot prove its legal standing (bankruptcy procedural rule)
(2) Alleged creditor cannot prove it is the real party in interest (bankruptcy procedural rule)
(3) The alleged creditor cannot make a “colorable claim” that it is the owner of your loan with a perfected security interest.
There are many other grounds to challenge your alleged creditor’s assertion that it has a right to lift the automatic stay in bankruptcy. To discuss your bankruptcy case, contact us at (877) 276-5084.
