{"id":2083,"date":"2011-07-27T09:07:53","date_gmt":"2011-07-27T14:07:53","guid":{"rendered":"https:\/\/nybankruptcy.net\/main\/?p=2083"},"modified":"2018-11-27T06:53:02","modified_gmt":"2018-11-27T06:53:02","slug":"can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay","status":"publish","type":"post","link":"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/","title":{"rendered":"Can creditors ask the Bankruptcy Court to lift the Automatic Stay?"},"content":{"rendered":"<p>The short answer is, \u201cYes, but&#8230;\u201d<\/p>\n<p>The automatic stay is one of the most important protections bankruptcy petitioners receive, so in practice, very few creditors can actually successfully argue a \u201cmotion for relief from stay,\u201d also called a, \u201cmotion to lift the stay.\u201d<\/p>\n<p>Unsecured creditors can almost never convince the bankruptcy court to lift the stay, although one exception is landlords who are not being paid. Secured creditors in a Chapter 7 will also almost never file a motion to lift the stay unless they are not being paid, and in a Chapter 13 case, secured creditors will almost never win the motion unless the debtor is not making post-petition payments.<\/p>\n<p>Still, it\u2019s fair to say the automatic stay is not set in stone. By using legal channels rather than breaching the stay, creditors can gain relief from it. After the creditor files the motion, the bankruptcy court will set a hearing date where the parties will argue it. If you are concerned about the automatic stay being lifted, here are some things to know:<\/p>\n<p>Lifting the stay requires the creditor to show \u201ccause.\u201d When the creditor does so, the burden shifts to the debtor to prove to the court that the motion should be denied. While showing \u201ccause\u201d is important, the bankruptcy code does not explicitly define what constitutes it. Bankruptcy courts are allowed to decide on a case-by-case basis because they are courts of equity, which means they can adjudicate issues based on circumstances and fairness rather than black letter law. This doesn\u2019t mean courts are flying blind or decide cause arbitrarily. They can use a balancing test to decide whether the creditor has shown that the automatic stay should be lifted.<\/p>\n<p>The criteria are:<\/p>\n<ul>\n<li>Whether prejudice will be caused to the debtor<\/li>\n<li>Whether hardship to the creditor for not lifting the stay outweighs hardship to the debtor<\/li>\n<li>Whether the creditor has a reasonable probability of prevailing on the merits<\/li>\n<\/ul>\n<p>Finally, the bankruptcy court can also use general policy guidelines to decide whether to lift the stay.<\/p>\n<p>Motions for relief from stay are rare as the exceptions listed at the beginning indicate, and creditors are barred from filing them in some situations, such as in a Chapter 13 proceeding in which the petitioner chooses to keep his or her home or if you have been making regular mortgage payments. In other instances, it\u2019s in the creditor\u2019s interest to wait out the bankruptcy case, and rather than violate the stay, they will foreclose on a debtor\u2019s home after the conclusion of his or her Chapter 7 bankruptcy.<\/p>\n<p>Thus, it is possible that one of your creditors will attempt to use legal processes to lift the automatic stay against you, or it may want to wait until after your bankruptcy to foreclose on you. These are compelling reasons to ensure you have an experienced New York bankruptcy attorney handling your case.<\/p>\n<p>For more questions about the automatic stay, attempts to lift it and effective strategies for dealing with foreclosure, please feel free to <a href=\"\/contact\"> contact<\/a> experienced\u00a0<a href=\"https:\/\/nybankruptcy.net\/main\/brooklyn-bankruptcy-law-firm\/automatic-stay\/\" target=\"_blank\" rel=\"noopener\"><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Bankruptcy Automatic Stay&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:8395267,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:[null,2,16777215],&quot;12&quot;:0,&quot;14&quot;:[null,2,2236962],&quot;15&quot;:&quot;Arial, Helvetica, sans-serif&quot;,&quot;26&quot;:400}\">Bankruptcy Automatic Stay<\/span><\/a> Bruce Weiner for a free initial consultation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The short answer is, \u201cYes, but&#8230;\u201d The automatic stay is one of the most important protections bankruptcy petitioners receive, so in practice, very few creditors can actually successfully argue a \u201cmotion for relief from stay,\u201d also called a, \u201cmotion to lift the stay.\u201d Unsecured creditors can almost never convince the bankruptcy court to lift the &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/\"> <span class=\"screen-reader-text\">Can creditors ask the Bankruptcy Court to lift the Automatic Stay?<\/span> Read More \u00bb<\/a><\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":""},"categories":[16,31],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Can creditors ask the Bankruptcy Court to lift the Automatic Stay?<\/title>\n<meta name=\"description\" content=\"The short answer is, \u201cYes, but...\u201d The automatic stay is one of the most important protections bankruptcy petitioners receive, so in practice, very few\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Can creditors ask the Bankruptcy Court to lift the Automatic Stay?\" \/>\n<meta property=\"og:description\" content=\"The short answer is, \u201cYes, but...\u201d The automatic stay is one of the most important protections bankruptcy petitioners receive, so in practice, very few\" \/>\n<meta property=\"og:url\" content=\"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/\" \/>\n<meta property=\"og:site_name\" content=\"Bankruptcy Attorney in Brooklyn, New York | Rosenberg Musso Weiner\" \/>\n<meta property=\"article:published_time\" content=\"2011-07-27T14:07:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-11-27T06:53:02+00:00\" \/>\n<meta name=\"author\" content=\"Matt Leichter\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Matt Leichter\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/\"},\"author\":{\"name\":\"Matt Leichter\",\"@id\":\"https:\/\/nybankruptcy.net\/main\/#\/schema\/person\/75d08d648836eaa13b64bf21273bf4e7\"},\"headline\":\"Can creditors ask the Bankruptcy Court to lift the Automatic Stay?\",\"datePublished\":\"2011-07-27T14:07:53+00:00\",\"dateModified\":\"2018-11-27T06:53:02+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/\"},\"wordCount\":527,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/nybankruptcy.net\/main\/#organization\"},\"articleSection\":[\"Bankruptcy\",\"Creditors\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/\",\"url\":\"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/\",\"name\":\"Can creditors ask the Bankruptcy Court to lift the Automatic Stay?\",\"isPartOf\":{\"@id\":\"https:\/\/nybankruptcy.net\/main\/#website\"},\"datePublished\":\"2011-07-27T14:07:53+00:00\",\"dateModified\":\"2018-11-27T06:53:02+00:00\",\"description\":\"The short answer is, \u201cYes, but...\u201d The automatic stay is one of the most important protections bankruptcy petitioners receive, so in practice, very few\",\"breadcrumb\":{\"@id\":\"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/nybankruptcy.net\/main\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Can creditors ask the Bankruptcy Court to lift the Automatic Stay?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/nybankruptcy.net\/main\/#website\",\"url\":\"https:\/\/nybankruptcy.net\/main\/\",\"name\":\"Bankruptcy Attorney in Brooklyn, New York | Rosenberg Musso Weiner\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/nybankruptcy.net\/main\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/nybankruptcy.net\/main\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/nybankruptcy.net\/main\/#organization\",\"name\":\"Rosenberg, Musso & Weiner, LLP\",\"url\":\"https:\/\/nybankruptcy.net\/main\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/nybankruptcy.net\/main\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/nybankruptcy.net\/main\/wp-content\/uploads\/2018\/06\/logo.png\",\"contentUrl\":\"https:\/\/nybankruptcy.net\/main\/wp-content\/uploads\/2018\/06\/logo.png\",\"width\":124,\"height\":108,\"caption\":\"Rosenberg, Musso & Weiner, LLP\"},\"image\":{\"@id\":\"https:\/\/nybankruptcy.net\/main\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/nybankruptcy.net\/main\/#\/schema\/person\/75d08d648836eaa13b64bf21273bf4e7\",\"name\":\"Matt Leichter\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/nybankruptcy.net\/main\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/bd20b564e1f526a569ac8b1fc9ef74db?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/bd20b564e1f526a569ac8b1fc9ef74db?s=96&d=mm&r=g\",\"caption\":\"Matt Leichter\"},\"url\":\"https:\/\/nybankruptcy.net\/main\/author\/mleichter\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Can creditors ask the Bankruptcy Court to lift the Automatic Stay?","description":"The short answer is, \u201cYes, but...\u201d The automatic stay is one of the most important protections bankruptcy petitioners receive, so in practice, very few","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/","og_locale":"en_US","og_type":"article","og_title":"Can creditors ask the Bankruptcy Court to lift the Automatic Stay?","og_description":"The short answer is, \u201cYes, but...\u201d The automatic stay is one of the most important protections bankruptcy petitioners receive, so in practice, very few","og_url":"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/","og_site_name":"Bankruptcy Attorney in Brooklyn, New York | Rosenberg Musso Weiner","article_published_time":"2011-07-27T14:07:53+00:00","article_modified_time":"2018-11-27T06:53:02+00:00","author":"Matt Leichter","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Matt Leichter","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/#article","isPartOf":{"@id":"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/"},"author":{"name":"Matt Leichter","@id":"https:\/\/nybankruptcy.net\/main\/#\/schema\/person\/75d08d648836eaa13b64bf21273bf4e7"},"headline":"Can creditors ask the Bankruptcy Court to lift the Automatic Stay?","datePublished":"2011-07-27T14:07:53+00:00","dateModified":"2018-11-27T06:53:02+00:00","mainEntityOfPage":{"@id":"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/"},"wordCount":527,"commentCount":0,"publisher":{"@id":"https:\/\/nybankruptcy.net\/main\/#organization"},"articleSection":["Bankruptcy","Creditors"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/","url":"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/","name":"Can creditors ask the Bankruptcy Court to lift the Automatic Stay?","isPartOf":{"@id":"https:\/\/nybankruptcy.net\/main\/#website"},"datePublished":"2011-07-27T14:07:53+00:00","dateModified":"2018-11-27T06:53:02+00:00","description":"The short answer is, \u201cYes, but...\u201d The automatic stay is one of the most important protections bankruptcy petitioners receive, so in practice, very few","breadcrumb":{"@id":"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/nybankruptcy.net\/main\/can-creditors-ask-the-bankruptcy-court-to-lift-the-automatic-stay\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/nybankruptcy.net\/main\/"},{"@type":"ListItem","position":2,"name":"Can creditors ask the Bankruptcy Court to lift the Automatic Stay?"}]},{"@type":"WebSite","@id":"https:\/\/nybankruptcy.net\/main\/#website","url":"https:\/\/nybankruptcy.net\/main\/","name":"Bankruptcy Attorney in Brooklyn, New York | Rosenberg Musso Weiner","description":"","publisher":{"@id":"https:\/\/nybankruptcy.net\/main\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/nybankruptcy.net\/main\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/nybankruptcy.net\/main\/#organization","name":"Rosenberg, Musso & Weiner, LLP","url":"https:\/\/nybankruptcy.net\/main\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/nybankruptcy.net\/main\/#\/schema\/logo\/image\/","url":"https:\/\/nybankruptcy.net\/main\/wp-content\/uploads\/2018\/06\/logo.png","contentUrl":"https:\/\/nybankruptcy.net\/main\/wp-content\/uploads\/2018\/06\/logo.png","width":124,"height":108,"caption":"Rosenberg, Musso & Weiner, LLP"},"image":{"@id":"https:\/\/nybankruptcy.net\/main\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/nybankruptcy.net\/main\/#\/schema\/person\/75d08d648836eaa13b64bf21273bf4e7","name":"Matt Leichter","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/nybankruptcy.net\/main\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/bd20b564e1f526a569ac8b1fc9ef74db?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/bd20b564e1f526a569ac8b1fc9ef74db?s=96&d=mm&r=g","caption":"Matt Leichter"},"url":"https:\/\/nybankruptcy.net\/main\/author\/mleichter\/"}]}},"_links":{"self":[{"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/posts\/2083"}],"collection":[{"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/comments?post=2083"}],"version-history":[{"count":4,"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/posts\/2083\/revisions"}],"predecessor-version":[{"id":8337,"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/posts\/2083\/revisions\/8337"}],"wp:attachment":[{"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/media?parent=2083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/categories?post=2083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nybankruptcy.net\/main\/wp-json\/wp\/v2\/tags?post=2083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}