What is a motion for relief of stay?
Motion for Relief from the Automatic Stay is a request by a creditor to allow the creditor to take action against the debtor or the debtor’s property that would otherwise be prohibited by the automatic stay.
How do you lift an automatic stay?
How to Ask to Lift the Automatic Stay. The creditor must file a written motion with the court explaining the need to lift the stay. The burden is on the creditor to prove that good cause exists to lift the automatic stay. The creditor must also provide the debtor with notice of the motion and the hearing on the matter.
What is a motion for relief from stay in a Chapter 13?
When you file a Chapter 13 bankruptcy an automatic stay goes into effect immediately upon the filing of your case. When these payments are not made, a secured creditor can file a Motion for Relief seeking relief from the Automatic Stay so they can take action against the collateral (i.e. your house or car).
What is an order granting relief from automatic stay?
A motion for relief from the automatic stay, also called a stay relief motion, is a request a creditor can submit to the bankruptcy court to ask for permission to take certain collection actions against the person who filed bankruptcy. Usually, you’ll see these motions filed by secured creditors.
How long does the automatic stay remain in effect?
The automatic stay remains in effect until your case is closed. But, of course, it isn’t always that simple. For Chapter 7, it’s often the case that a stay will last the 3-5 months the court case is open. For Chapter 13, bankruptcy cases could take anywhere from 3-5 years.
How are creditors notified of automatic stay?
The court clerk will send a written notice of your bankruptcy filing to all of the creditors listed on your creditor matrix, or mailing list, within 24 to 48 hours of you filing your petition. Once the stay is in effect, your creditors will be prohibited from initiating or continuing many actions against you.
Does the automatic stay end at discharge?
The length of the automatic stay is dependent on whether it applies to actions against the debtor or their real property. But generally speaking, the automatic stay ends, when the bankruptcy is discharged.
What if creditor violated automatic stay?
The automatic stay is tantamount to a court order and, thus, violation of the automatic stay by creditors can have serious repercussions. Attempts to repossess property, suits in court and other actions taken in violation of the automatic stay are generally void. These creditors may be entitled to damages as well.
What happens if creditor violated automatic stay?
The automatic stay is tantamount to a court order and, thus, violation of the automatic stay by creditors can have serious repercussions. Attempts to repossess property, suits in court and other actions taken in violation of the automatic stay are generally void. In other words, they are given no legal effect.
What activities are subject to the automatic stay?
Automatic-stay provisions protect the debtor against certain actions from their creditors, including starting or continuing court proceedings against the debtor; moving to foreclose on a debtor’s property; creating, perfecting, or enforcing a lien against a debtor’s property; and attempting to repossess collateral.
Can a debtor violate the automatic stay?
It is possible they will rule that mere inaction does not violate the automatic stay. But unless that happens, creditors who fail to unwind collection efforts when demanded to do so by a debtor in bankruptcy risk being held in contempt and liable for damages.