English

Motion to Lift the Automatic Stay

MO-shun tuh lift the uh-tuh-MAH-tik STAY
A legal motion filed in court by a creditor in a bankruptcy case asking the judge to lift the automatic stay, which is a court order that prevents creditors from collecting debts from the debtor while the bankruptcy case is pending.
The creditor filed a motion to lift the automatic stay so they could foreclose on the debtor's property.
Relief from Stay Center, Inc. v. Continental Casualty Co. (1989) - The Supreme Court addressed the standards for lifting the automatic stay in bankruptcy cases.
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Frequently Asked Questions

What are the grounds for filing a motion to lift the automatic stay?

Common grounds include a lack of equity in the property, lack of adequate protection for the creditor's interest, or the debtor's bad faith in filing for bankruptcy.

What happens if a motion to lift the automatic stay is granted?

If the motion is granted, the creditor will be able to take action to collect their debt from the debtor.

What are some of the factors a judge may consider when ruling on a motion to lift the automatic stay?

The judge will consider the harm to the creditor if the stay remains in place, the harm to the debtor if the stay is lifted, and the interests of the bankruptcy estate.

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