What does a relief of stay mean? 28 Answers as of September 21, 2011

I got a letter from lender stating a relief of stay while in Chapter 13. What does this mean?

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Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
The Creditor is asking the court to be able to proceed even though you filed Bankruptcy.
Answer Applies to: Washington
Replied: 9/21/2011
Paul Stuber, Attorney at Law
Paul Stuber, Attorney at Law | Paul Stuber
When you file a bankruptcy a "stay" is placed on all your creditors to stop collections. If the creditor files for a relief of stay and it is granted then at that time the creditor is again allowed to collect what is allowed in the bankruptcy. Usually that means you do not want to keep a car or other collateral on a loan and do not plan to pay for it in the plan, then the creditor can repossess the car and sell it.
Answer Applies to: Colorado
Replied: 9/6/2011
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
Relief from stay is simply a creditor asking the court for permission to pursue a debt or collateral secured by a debt. The stay refers to the "automatic stay" that prohibits collection effort.
Answer Applies to: Indiana
Replied: 9/5/2011
Heupel Law
Heupel Law | Kevin Heupel
A relief of stay means that you have not been making your mortgage or car payment after filing Chapter 13 and the creditor is taking the property out of the bankruptcy estate in order to foreclose on the home or repossess the car. If you are surrendering these items, then it is a formality to the bankruptcy process. However, if it was your intent to keep the property, then you are losing your rights to do so and need to get current on your payments in order to keep the house or car.
Answer Applies to: Colorado
Replied: 9/5/2011
Colorado Legal Solutions
Colorado Legal Solutions | Stephen Harkess
When a lender gets relief from stay, your property is no longer protected by the bankrutpcy. The lender is allowed to go forward with foreclosure or repossession.
Answer Applies to: Colorado
Replied: 9/2/2011
    Ross Smith, Attorney at Law
    Ross Smith, Attorney at Law | Charles Ross Smith III
    A Motion for Relief From Stay means the bank is asking the Bankruptcy Court for permission to continue a foreclosure in state court. You must immediately ask the Bankruptcy Court for a hearing on the matte, if you want to keep your home. You need an attorney. Now, you need to demonstrate that your home is worth more than the mortgages on it and that you can get the arrearages paid up in a reasonable time. So get an attorney to hepl you prove these things at your hearing. If you don't ask for a hearing, the motion will be granted and the foreclosure wil proceed in state court.
    Answer Applies to: Ohio
    Replied: 9/1/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    A motion for relief from stay can be filed in a chapter 13 when you fall behind on your loan. What it means is that the lender is asking the court for permission to go ahead with its legal rights in spite of the bankruptcy. In some cases you can successfully oppose the motion if you provide what is called adequate protection payments. Consult an attorney as to how you can defend the motion.
    Answer Applies to: California
    Replied: 9/1/2011
    The Law Office of Marvin Wolf
    The Law Office of Marvin Wolf | Marvin Wolf
    A relief from stay is a formal motion to the court asking that the automatic stay against collection that went into effect when a debtor filed his bankruptcy be removed by the judge so that the creditor can continue collection efforts against the debtor, such as a foreclosure or sheriff's sale. If a debtor does not formally oppose the motion in writing within the time limits set by the court rules, the judge will usually grant it. In opposition, which must be served on the creditor and filed with the court, a debtor must contest the reasons the creditor is asking for relief and ask the judge to deny the creditor's motion. This is litigation. It happens a lot in Chapter 13. Disclaimer: Not legal advice, just general legal information. I'm not your lawyer. This is not a privileged communication. I am a federally designated debt relief agent and bankruptcy attorney for NJ and NY.
    Answer Applies to: New Jersey
    Replied: 9/1/2011
    G. Anthony Yuthas & Assoc.
    G. Anthony Yuthas & Assoc. | Tony Yuthas
    Relief from stay means that a motion has been filed with the Court asking them to grany a relief from the stay order that automatically accompanies a bankruptcy plan. Until relief is granted no collection efforts are allowed. If the proper grounds are presented to the court, and you failed to answer or object to the motion, then a relief may be granted. This would allow the creditor to proceed to collection of their debt.
    Answer Applies to: Colorado
    Replied: 9/1/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    Whrn you file for bk you get an automatic stay. This stay prohibits creditors from doing any form of collection such as calling you, repossessing cars, foreclosing on homes, etc. A secured creditor can motion the court requesting relief from the stay so they can do one of the above things.
    Answer Applies to: California
    Replied: 9/1/2011
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
    lender gets house removed from bankruptcy so they can sell it.
    Answer Applies to: California
    Replied: 9/1/2011
    Theodore N. Stapleton, PC
    Theodore N. Stapleton, PC | Theodore N. Stapleton
    They want to foreclose. I am happy to discuss these issues with you.
    Answer Applies to: Georgia
    Replied: 9/1/2011
    Dan Wilson Bankruptcy
    Dan Wilson Bankruptcy | Dan Wilson
    When you filed your bankruptcy petition the court issued an Automatic Stay to your creditors. That means the creditor cannot attempt to collect the debt. This includes letters and phone calls, garnishment, foreclosure or repossession. Your creditor is asking permission from the court to attempt to collect the debt. This is called a Motion for Relief From the Automatic Stay. Creditors usually do this to start foreclosure or repossession procedures. You should call the attorney who handled your case.
    Answer Applies to: Colorado
    Replied: 9/1/2011
    Law Office of John C. Farrell, Jr.
    Law Office of John C. Farrell, Jr. | John C. Farrell, Jr.
    A relief from stay is filedto modify or dissolve the automatic stay imposed by the bankruptcy. The automatic stay prevents secured creditors from enforcing their lien rights. After giving notice and having a hearing, the bankruptcy trustee may abandon any property of the estate that is burdensome to the estate or that is of inconsequential value and benefit to the estate.
    Answer Applies to: Massachusetts
    Replied: 9/1/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    When a bankruptcy case is filed an order from the court (staying) stopping creditors from taking any collection or legal action against the debtor filing for bankruptcy takes effect automatically. This is called the "automatic stay". When the creditor gets permission from the bankruptcy court to proceed with collection or legal action, the order of the court is called a "relief of stay" order. The creditor can then continue a lawsuit, foreclose on a house, repossess a car or whatever the order says the creditor can do.
    Answer Applies to: California
    Replied: 9/1/2011
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    It means they want the automatic stay to be lifted so they can proceed with the legal remedies outside of bankruptcy.
    Answer Applies to: California
    Replied: 9/1/2011
    Kalra Law Firm
    Kalra Law Firm | Madhu Kalra
    When chapter 13 is filed, there is automatic stay imposed upon creditors. In plane language, lenders cann't repossess your vehicle, even if debtor is behind on making regular payments with respect to the vehicle, without first obtaining bankruptcy court order. Basically, when you get letter from a lender requesting relief from stay, it is seeking permission from the court to proceed with the collection efforts such as by repossessing secured object, vehicle or foreclosure of the house, in accordance with the State laws.
    Answer Applies to: California
    Replied: 9/1/2011
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    A relief of stay allows the lender to foreclose on property or otherwise move to collect the debt owed. The stay is the automatic enforcement stay granted when you file for bankruptcy.
    Answer Applies to: California
    Replied: 9/1/2011
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Generally a secured creditor wants to take back its collateral to sell to satisfy its debt.
    Answer Applies to: Michigan
    Replied: 9/1/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    If it from a lender, it probable means they have filed a motion with the court to have the automatic stay lifted so they can continue to either foreclose on a house or repossess a car or some other personal property where there is a lien.
    Answer Applies to: California
    Replied: 8/31/2011
    Diana K. Zilko, Attorney at Law
    Diana K. Zilko, Attorney at Law | Diana K. Zilko
    It means that they want the automatic stay, which is put in place when you file for bankruptcy, to be lifted. The stay prevents them from attempting to collect what you owe.
    Answer Applies to: California
    Replied: 8/31/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    It means they are going after your property.
    Answer Applies to: California
    Replied: 8/31/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    A creditor is asking the court for permission to remove some item of property from your case so they can either foreclose or repossess it. This is generally done when you fail to make payments on it.
    Answer Applies to: California
    Replied: 8/31/2011
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    You have not stayed current with your payments to a secured lender so they are seeking permission from the court to proceed with seizure of the asset.
    Answer Applies to: Nevada
    Replied: 8/31/2011
    Burnham & Associates
    Burnham & Associates | Stephanie K. Burnham
    Relief from a stay means that the creditor may take collection actions to pursue the debt. For example, it may mean that a bank can begin foreclosure proceedings on real estate or a lender may repossess a car.
    Answer Applies to: New Hampshire
    Replied: 8/31/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    It means you had better stop being pro se and get a lawyer. First of all, you did not get a letter. You got a motion. If you lose that motion (and you will lose it without counsel) that creditor will get the relief they sought. If that relief is against your home or car your whole chapter 13 may be down the toilet. This is why you never file a pro se bankruptcy.
    Answer Applies to: Georgia
    Replied: 8/31/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    Relief from stay means they want permission to foreclose or otherwise protect their rights or collect money. Your lawyer will respond.
    Answer Applies to: Virginia
    Replied: 8/31/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    Relief for stay in bankruptcy means that a creditor can now foreclose on a property as the automatic stay that prevents creditors from taking possession of property is lifted. The automatic stay is usually lifted if there is secured property involved that is being surrendered to a creditor.
    Answer Applies to: Washington
    Replied: 8/31/2011
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