What is Motion from relief from automatic Stay in a chapter 7 bankruptcy case,

Asked about 4 years ago - Lehi, UT

We are trying to keep our home under chapter 7 bankruptcy? the case has not been dismissed yet. Our mortgage holder sent us a Motion from relief from automatic stay. and a hearing date has been scheduled. I just want someone to tell me what this means a brief description? Thanks

Attorney answers (3)

  1. Joshua Randall Trigsted

    Contributor Level 4

    Answered . When you file for bankruptcy, an order goes into effect automatically that prevents creditors from taking action against you or contacting you about your debts. This is called the "automatic stay." By filing this motion, your mortgage lender is asking the court to release the stay with respect to them, so that they can take action outside the bankruptcy court to protect their interest in your home. I will not be ale to help you personally with this, but I recommend you hire an attorney to protect your interests.

  2. Jeff Adrian Biddle

    Pro

    Contributor Level 16

    Answered . When you filed bankruptcy, an automatic stay went into effect preventing the creditors from foreclosing on the house. They have filed a motion with the court to allow them to foreclose on the house. In a Chapter 7, you will need to come up with all of the missed payments in order to keep your house. If you aren't able to make up the missed payments soon, the court will grant the creditor the relief that they are seeking and allow them to foreclose on the house. If you filed a Chapter 13, you could make up the missed payments over the life of your Chapter 13 plan instead of in a very short time period. It sounds like a consultation with a lawyer in your jurisdiction would be helpful to you.

  3. Dennise Louise Mccann

    Pro

    Contributor Level 10

    Answered . Briefly, once an individual files for Chapter 7 a stay goes into effect that prohibits all creditors from seeking to collect debts against the debtor. A creditor has the right to ask the court to lift the stay to allow the creditor to continue to collect its debt in certain circumstances. In your case, the lender is asking the court for permission to begin foreclosure proceedings likely because you are in default on the mortgage and there is no equity in the property.

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