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.

What is a motion of relief from stay in Chapter 13?

In most Chapter 13 Plans, the Debtor is required to make payments to their secured creditors outside the Plan. 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 does lift the stay mean?

In relation to Bankruptcy, motion to lift the stay is a request made by the party to the bankruptcy court for altering the automatic bankruptcy stay to allow the movant to act against the debtor or the debtor’s property, as when a creditor seeks permission to foreclose on a lien since its security interest is not …

What does relief granted mean?

n. generic term for all types of benefits which an order or judgment of court can give a party to a lawsuit, including money award, injunction, return of property, property title, alimony, and dozens of other possibilities. ( See: judgment)

Can you file a motion for relief from stay in bankruptcy?

This is how you get debt relief when you file for bankruptcy. It is against federal law for creditors to violate the stay. This means that any litigation comes to a grinding halt. However, in certain situations, creditors have the right to ask to bankruptcy court to “lift the stay” which is done in a “motion for relief” from the stay.

Why are courts may lift bankruptcy automatic debt relief?

A creditor’s motion to lift the stay must clearly state the reason for the request and need for relief from the stay. However, if related litigation is cited as a reason, the court is less likely to lift the stay because the purpose of bankruptcy is to centralize debts. Timing on Lifting a Stay

How does a motion for relief from stay work?

The automatic stay is a court order that can stop a foreclosure on a house or a repossession of a vehicle and prohibits creditors from contacting you to collect a debt. A creditor cannot proceed with a foreclosure or repossession unless the automatic stay is lifted; this is done by filing a Motion for Relief from Stay with the court.

Can a bankruptcy judge lift an automatic stay?

The stay remains activated until the bankruptcy petition is dismissed or if a federal judge grants relief from the stay to a creditor, which is only considered after a creditor files a motion to lift the stay. Although rare, a bankruptcy court may grant relief from an automatic stay under certain circumstances.