Louisiana Motion for Relief from Stay is a process where a creditor can ask the court to lift the automatic stay on the debtor's assets, allowing them to proceed with collection efforts. This motion is typically used in Chapter 7 bankruptcies when the debtor has assets that are not exempt from creditors' claims. The two types of Louisiana Motion for Relief from Stay are: (1) Absolute Relief from Stay and (2) Limited Relief from Stay. An Absolute Relief from Stay lifts the automatic stay so that the creditor can proceed with collection efforts on the debtor's non-exempt assets. A Limited Relief from Stay allows the creditor to proceed with collection efforts on the debtor's non-exempt assets, but the debtor may still keep the asset.
Louisiana Motion for Relief from Stay
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Louisiana
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LA-SKU-0045
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Motion for Relief from Stay
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Motion for Relief from the Automatic Stay is a request by a creditor to allow the creditor to take action against the debtor or the debtor's property that would otherwise be prohibited by the automatic stay.
The Stay Has Been Lifted ? Now What? Once a creditor gets a court order lifting the automatic stay, they are allowed to move forward with foreclosure or repossession of the property that secures the debt. That said, the creditor still needs to follow state law for their collection or eviction proceedings.
The most common reason for a creditor to make a motion for relief from the automatic stay is that the debtor has filed Chapter 7 Bankruptcy or Chapter 13 Bankruptcy and does not want to use the bankruptcy to keep their house or car.
Automatic Stay -- Immediately after a bankruptcy case is filed, an injunction (called the "Automatic Stay") is generally imposed against certain creditors who want to start or continue taking action against a debtor or the debtor's property.
An order for relief invokes the automatic stay and brings down an iron curtain, separating the pre-bankruptcy from the post-bankruptcy debtor, creating a bankruptcy estate and prohibiting unauthorized transfers of the debtor's property.
This Standard Clause for use in a forbearance or restructuring agreement provides for a defaulting borrower to waive its right to assert the automatic stay against a lender if it later files for bankruptcy. This Standard Clause has integrated notes with important explanations and drafting tips.