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I got a letter from lender stating a relief of stay while in Chapter 13. What does this mean?
14 ANSWERS
Bankruptcy Chapter 7 Attorney serving Boulder, CO
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Law Office of Paul Stuber
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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.
Answered on Sep 06th, 2011 at 1:58 PM
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.
Answered on Sep 05th, 2011 at 9:01 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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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.
Answered on Sep 01st, 2011 at 7:30 PM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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They want to foreclose. I am happy to discuss these issues with you.
Answered on Sep 01st, 2011 at 10:47 AM
Daniel James 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.
Answered on Sep 01st, 2011 at 10:42 AM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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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.
Answered on Sep 01st, 2011 at 9:33 AM
judith runyon
It means they want the automatic stay to be lifted so they can proceed with the legal remedies outside of bankruptcy.
Answered on Sep 01st, 2011 at 8:46 AM
Bankruptcy Attorney serving Torrance, CA
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Kalra Law Firm Professional Corporation
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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.
Answered on Sep 01st, 2011 at 5:40 AM
Alternative Dispute Resolution Attorney serving Ventura, CA
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Zahn Law Office
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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.
Answered on Sep 01st, 2011 at 5:30 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Generally a secured creditor wants to take back its collateral to sell to satisfy its debt.
Answered on Sep 01st, 2011 at 3:27 AM
2 Awards
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.
Answered on Aug 31st, 2011 at 8:21 PM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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Relief from stay means they want permission to foreclose or otherwise protect their rights or collect money. Your lawyer will respond.
Answered on Aug 31st, 2011 at 8:19 PM
Bankruptcy Attorney serving Seattle, WA
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Symmes Law Group, PLLC
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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.
Answered on Aug 31st, 2011 at 8:18 PM
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.
Answered on Aug 31st, 2011 at 8:15 PM