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Why is a Motion for Relief from Stay is filed?

Updated: 8/19/2019
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13y ago

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It is filed because a secured creditor (who has stopped receiving payments) wants to foreclose on the collateral of the loan/promissory note. It is filed because a BK filing prevents a creditor from trying any collection activity (the "stay"). So a creditor that wants to continue to collect/foreclose must seek court permission to do so- hence "relief" from "stay"

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Q: Why is a Motion for Relief from Stay is filed?
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What does motion for relief relief from stay fee amount 150.00 filed by creditor Iowa law?

When you filed your bankruptcy, the court issued an automatic stay which prevents any creditor from moving forward with collection efforts. For whatever reason, this particular creditor wants to proceed with collection and it must request the permission of the bankruptcy court by filing the motion for relief from automatic stay.


What is a motion for relief from the automatic stay?

Automatic Stay is the thing that is automatically done when you file bankruptcy. It protects the assets of the bankruptcy estate. It prevents collection attempts. It stops foreclosure / evictions. A motion for relief from automatic stay is filed by a creditor when they want to foreclose, continue foreclosure, eviction, reposession, etc. Speak with an attorney about your specific situation. If you can not find an attorney, contact your local Bar association and they will refer you to one.


What is a No Opposition Order in a Chapter 13 when a Motion for Relief from Automatic Stay is filed?

In 37 years of bankruptcy practice, i have never seen a "No Opposition Order." If no opposition to any motion is filed, after the time allowed for such oppositions, the court issues an order allowing the motion, stating that no opposition was filed.


Can the creditor that filed motion for relief get any money?

Yes.


Is it legal for a credit company attorney to be sending relief from stay motion papers directly to the creditor instead of the attorney which represents the creditor that has filed chapter 13?

If a creditor files a motion for relief from stay in any bankruptcy proceeding, the papers should be served on the debtor's attorney of record.


What is ordergranting motion for relief-unopposed order lifting stay?

Sound like someone filed a motion to life a stay, the other party did not oppose the motion, and the court granted it. A stay is an order stopping some action by another person or entity, or stopping the enforcement of a judicial or administrative order.


How do you proceed with a liability lawsuit against someone who has filed for bankruptcy to avoid penalties?

You can't, unless the liability is for fraud. You can file a motion for relief from stay, but it will not likely be granted. Unless the court grants you relief from the automatic stay, you cannot proceed. The liability will be discharged.


How do you file a rebuttal for relief from bankruptcy stay?

You file an objection to the motion for relief.


If a motion for relief of stay has been granted in a Chapter 13 case is there any defense?

The best approach would be to work with the Creditor's attorney to come up with some kind of agreement. You can also move to have the stay reimposed or ask the Judge to reconsider lifting the stay. If the motion for relief from stay has been granted, you no longer have a defense. The time to raise a defense would have been right after the motion was filed by obtaining a hearing date and opposing the motion. The creditor is not required to negotiate with you, but you should at least try again.


Is there anything else you need to do if you have a non-paying tenant who has filed chapter 13 and you have filed a small claims case and a motion for relief of stay?

You can't file any legal action against the non-paying tenant until the chapter 13 has been dismissed or the court grants your relief from stay motion. You can also file a motion to have the entire case dismissed if the failure to pay rent is a breach of the chapter 13 plan. If the tenant is still in the property, you will want to file an eviction lawsuit and not a small claims lawsuit.


Can new debt be collected after bankruptcy?

Yes, the debts protected under a bankruptcy proceeding are enumerated when bankruptcy is filed. Any debts accrued by the bankrupt party in the future are not protected by a previously filed bankruptcy.


Can the creditor continue to collect after a 'Motion For Relief Of Stay' is granted?

Yes.