Texas Order for Relief in an Involuntary Case - B 253

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This form is an order for relief in an involuntary bankruptcy case. The form must be signed by the presiding bankruptcy judge.

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FAQ

The determination that a person or entity is a debtor under the Bankruptcy Code. In a voluntary bankruptcy case, the filing of the bankruptcy petition constitutes an order for relief (§ 301(b), Bankruptcy Code).

An order for relief will be entered if the debtor does not contest the involuntary petition or, if the debtor contests the involuntary petition, an order for relief will be entered if (1) the court determines that the debtor is not paying its undisputed debts as they come due, or (2) a custodian (other than a trustee, ...

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.

An involuntary case may be commenced only under chapter 7 or 11 of this title, and only against a person, except a farmer, family farmer, or a corporation that is not a moneyed, business, or commercial corporation, that may be a debtor under the chapter under which such case is commenced.

The most important thing the order for relief does for debtors is initiate the automatic stay. The automatic stay halts all actions by creditors to collect on debtors' debts or foreclose or repossess their assets. It's one of bankruptcy's biggest privileges to debtors.

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Texas Order for Relief in an Involuntary Case - B 253