What does relief from stay and abandonment mean?

Full question:

What is a relief from Stay and Abandonment?

  • Category: Bankruptcy
  • Date:
  • State: Louisiana

Answer:

Relief from stay refers to a creditor's request to continue collection actions on a debt even after a bankruptcy filing. For instance, a bank may seek relief from stay to proceed with a foreclosure. When a bankruptcy case is filed, it triggers an automatic stay, which halts most actions by creditors against the debtor and their property. This includes lawsuits, eviction processes, and other collection efforts.

Abandonment in bankruptcy law defines which properties are part of the debtor's estate and can be managed by the trustee. The trustee can abandon property if it is deemed of little value or benefit to the estate. This can occur through a proposed abandonment initiated by the trustee or a compelled abandonment requested by a party in interest. Additionally, any property that remains unadministered at the closing of the case is considered abandoned from the estate, referred to as deemed abandonment.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

A motion for relief from stay is a formal request made by a creditor to the bankruptcy court. The creditor seeks permission to continue collection actions, such as foreclosures or repossessions, that are typically halted by the automatic stay triggered when a bankruptcy case is filed. If granted, this allows the creditor to proceed with their actions against the debtor's property.