What does "motion for order granting relief from automatic stay" mean?

Question

a tem used in law

Answer 1

This is a bankruptcy term. When you file bankruptcy, an automatic stay is entered for at least 20 days. During that period of time, no creditor can contact you regarding any debt. The Motion is asking for the court to lift the stay and allow the creditor to pursue you immediately. These motions are not granted very frequently. For one reason, 20 days is a short period of time to wait to collect a debt. Also, if you are going to bankrupt the debt, lifting the stay is meaningless. The Motion is granted most frequently when the property could be damaged in the period the automatic stay is in effect.

Answer 2

When somebody files a Bankruptcy Petition, the automatic stay prevents creditors from contacting the debtor.

Creditors like to review the Bankruptcy Petition and attend the Section 341 (Creditors Meeting). After reviewing the Petition and listening to the debtor's testimony, they can make a determination whether or not the debtor may be interested in "reaffirming the debt" or whether it may be necessary to get relief from the automatic stay in order to repossess the collateral for the loan.

In most cases, a debtor may be interested in reaffirming debts such as the debt on an automobile which they need to get to work or the mobile home in which they live. Where payments are not being made, the creditors must file a motion for relief from the automatic stay to enable them to either repossess the collateral for the loan or either begin or resume a mortgage foreclosure. If the debtor decides that he or she does not want to use the collateral or that he or she would agree to the mortgage foreclosure, the debtor could sign a consent which could expedite the process.

If, once a motion is filed, the debtor chooses to contest the motion for relief from automatic stay, the debtor must do so with a responsive pleading. If the debtor fails to respond within the length of time specified in the bankruptcy rules of the judicial district, the judge may sign an order. If the debtor files a responsive pleading answering the motion, there will be a hearing. In many cases, at least in the Middle District of Pennsylvania, the hearing can be held as a telephone conference involving the bankruptcy judge, and the attorneys for the movant and respondant.

Answer 3

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What does "motion for order granting relief from automatic stay" mean?
a tem used in law