CREDITOR MOTIONS FOR RELIEF FROM THE AUTOMATIC STAY
A creditor in a Chapter 7, 11, or 13 bankruptcy case can file a Motion for Relief from Stay. This filing asks the Bankruptcy Court to "lift" the automatic stay for a particular purpose such as proceeding with the repossession of a car or the foreclosure of a home. These Motions are regularly filed in bankruptcy cases, and, absent opposition from a debtor, they are routinely granted.
There are many reasons a creditor may file a Motion for Relief, such as a lack of equity in real estate or the fact that the debtor is surrendering property in a Chapter 7 case.
RESPONDING TO THE MOTION FOR RELIEF FROM STAY
There are a variety of mechanisms for responding to a creditor's Motion for Relief from Stay. A response requires an in-depth analysis of the facts and circumstances giving rise to the Motion. In some instances we are able to:
- File an Objection the Motion for Relief from Stay
- Negotiate a potential resolution to the Motion with the attorneys for the creditor
If there is no response filed to the Motion for Relief from Stay, the Court will typically grant it. This will enable the creditor to resume its collection activities.
AN EXPERIENCED CONNECTICUT BANKRUPTCY ATTORNEY CAN HELP
When a creditor files a Motion for Relief, our first step is to analyze the basis for the Motion. In some cases, a decision has already been made to surrender the property that is the subject of the Motion. In others, we can file an Objection to the Motion or reach out to the attorneys for the creditor to reach a resolution. Our firm offers low cost Chapter 7 and Chapter 13 bankruptcy representation. For a case evaluation, contact us today.