If you decide to claim bankruptcy in Arizona, the first step is to file a bankruptcy petition with the Arizona Bankruptcy Court, which is part of the U.S. District Court system. Once this petition for bankruptcy is filed, the court issues an injunction that halts any foreclosures, garnishments, lawsuits, and debt collection activities related to your debts. This “automatic stay” comes as a welcome relief to those who are experiencing financial difficulties and are also dealing with stress of constant creditor harassment and debt-collection activities.
However, it is possible for some creditors to get an exception to this automatic stay, which is done by filing a “Motion for Relief from the Automatic Stay” (and submitting additional documentation) with the court that is handling your Arizona bankruptcy case. You will be notified if any Motion for Relief is filed, and will have a chance to respond to the motion before the court decides whether or not to grant it. If you object to the Motion for Relief, the court may hold a hearing on the matter. If the court decides to grant the Motion for Relief, they will issue an order stating such, of which you’ll receive a copy.
The Arizona Bankruptcy Court advises against proceeding with filing for bankruptcy without the help of a qualified Arizona bankruptcy attorney. If a Motion for Relief from Automatic Stay has been filed in your Arizona bankruptcy claim, it’s even more important to retain the services of a qualified Casa Grande, Arizona bankruptcy lawyer.
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