New York Sample Letter for Hearing on Motion for Relief from Automatic Stay
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How to fill out Sample Letter For Hearing On Motion For Relief From Automatic Stay?
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FAQ
Upon the filing of a bankruptcy, an injunction (called the ?Automatic Stay?) goes into effect which in most circumstances stops creditors from most collection actions. The stay arises by operation of law and requires no judicial action.
When it comes to filing Chapter 7 bankruptcy, debts incurred before filing are called pre-petition debts, that debtors are discharged from, whereas debts incurred after a filing are post-petition payments, which debtors still must pay on.
The automatic stay generally remains in place until the discharge is entered. Once that happens, you're no longer responsible for the unsecured debts incurred before your Chapter 7 was filed. The permanent protection from creditors provided by the discharge is much stronger than the automatic stay.
The automatic stay remains in effect until your case is closed. But, of course, it isn't always that simple. For Chapter 7, it's often the case that a stay will last the 3-5 months the court case is open. For Chapter 13, bankruptcy cases could take anywhere from 3-5 years.
LBR 9013-1(o) provides that some motions may be filed and served without first scheduling a hearing, and must contain notice that parties have a chance to request a hearing. 1. LBR 9013-1(o) provides the procedure for giving notice that parties have an Opportunity to File a Response and Request a Hearing.
Because of the duration of the court case, a Chapter 7 automatic stay often lasts for three to four months. In contrast, the automatic stay remains effective on Chapter 13 bankruptcy cases throughout the duration of the debtor's repayment plan, assuming they comply with the terms.
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.
