Can a creditor obtain relief from the automatic stay?

relief stay consumer bankruptcy

Can a creditor obtain relief from the automatic stay?

Yes, by filing a motion in the Bankruptcy Court and persuading the judge to grant relief. An order granting relief from the automatic stay permits a creditor to take certain specified actions, which will be spelled out in the order, to collect a debt against you. The relief may include permission to foreclose or repossess, to seek recovery under an insurance policy, to continue an action against you in a state court, and so on.

In a Chapter 13 case there must be cause for the creditor to take action.

(Reviewed 11.14.08)

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