Order granting motion to extend automatic stay
Definition and meaning
The Order Granting Motion to Extend Automatic Stay is a legal document issued by a bankruptcy court. It officially extends the automatic stay that prevents creditors from taking collection actions against the debtor. This order is crucial in providing relief during bankruptcy proceedings, allowing the debtor time to reorganize their affairs without the pressure of creditor actions.
Who should use this form
This form is appropriate for individuals or entities who have filed for bankruptcy and require additional time to address their financial situation. It is particularly beneficial for debtors who need to prevent collection efforts from creditors while they negotiate repayment plans or work toward debt resolution.
How to complete a form
To complete the Order Granting Motion to Extend Automatic Stay, follow these steps:
- Identify the bankruptcy court handling your case.
- Fill in the case number and details of the debtor(s).
- Clearly specify the reasons for requesting the extension of the automatic stay.
- Sign the order and provide any necessary documentation to support your motion.
Key components of the form
The form typically includes the following key components:
- Case information, including the debtor's name and case number.
- The specific requests for extending the automatic stay.
- Signature lines for the bankruptcy judge and the attorney representing the debtor.
- A declaration of good faith by the debtor.
Common mistakes to avoid when using this form
When using the Order Granting Motion to Extend Automatic Stay, be mindful of the following common mistakes:
- Failing to provide sufficient evidence for the extension request.
- Incorrectly filling out case details, such as the court name or case number.
- Not signing the form or submitting it without the necessary attachments.
What to expect during notarization or witnessing
When completing the Order Granting Motion to Extend Automatic Stay, notarization may not be required in all jurisdictions. However, if witnessing is necessary:
- Be prepared to present identification to the notary.
- Ensure that witnesses understand the document and can confirm your signature if required.
Witnessing adds credibility and ensures that the document is legitimate.
Legal use and context
The Order Granting Motion to Extend Automatic Stay is primarily used in bankruptcy proceedings under the United States Bankruptcy Code. It serves as a means for individuals or entities under financial stress to seek protection from creditors while they seek to reorganize. The court's approval is essential to validate the extension of the automatic stay, ensuring that the debtor can work towards their financial recovery safely.
Form popularity
FAQ
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.
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.
Civil cases involving family or domestic issues - Most family court proceedings cannot be halted by the automatic stay, including child custody and paternity cases, as well as divorce cases addressing issues other than the division of marital property.
The most commonly sought exceptions are actions by parties to securities contracts to close out open positions; eviction of a debtor by a landlord where the lease has been fully terminated prior to the bankruptcy filing; actions by taxing authorities to conduct tax audits, issue deficiency notices, demand tax returns
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.
The automatic stay is one of the fundamental debtor protections provided by the bankruptcy laws. It gives the debtor a breathing spell from his creditors. It stops all collection efforts, all harassment, and all foreclosure actions.
