The “Ping-Pong” Legal Filer

It’s annoying, it’s expensive, and it’s downright harassing. But, what can be done about the “ping-pong” filer also known as the debtor and his cohorts who file successive bankruptcy cases to avoid entry of a Final Judgment of Foreclosure?  A creditor should consider seeking prospective relief from the automatic stay under U.S. Bankruptcy code section 362(d)(4) to prevent a debtor and other bad actors from stalling or delaying entry of the foreclosure judgment, the notice of sale, or the certificate of title when successive filings interfere with completion of the foreclosure action.

Section 362(d)(4) allows a court to consider relief from the automatic stay based on serial bankruptcy filings affecting real property when the court finds that the filings are a part of a plan or scheme to delay, hinder, or defraud creditors.  If an order granting relief under section 362(d)(4) is properly recorded, the order grants relief as to the subject property in any other bankruptcy case affecting the real property for two years.  Although a debtor may move for relief from an order granting prospective relief, the debtor must show a change in circumstances or good cause.  This is a powerful tool for a creditor who is faced with a difficult and expensive task of fighting debtors and their cohorts who seek to take advantage of the bankruptcy code’s protections of the automatic stay.

So stop the harassment, stop the bleeding outlay of funds, and stop the ping-pong filer who uses the bankruptcy automatic stay as their shield and use section 362(d)(4) as your sword to move on with your state court rights!

*For a thorough analysis of your collateral and loan documents affected by Title 11, contact Solomon Law 813-225-1818

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