We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
Motion for Relief from Stay and Abandonment (Bankruptcy)
Understanding the Motion for Relief from Stay and Abandonment (Bankruptcy)
Definition & meaning
A motion for relief from stay and abandonment is a formal request filed in bankruptcy court. This motion seeks to either modify, condition, or completely lift the automatic stay that is imposed under Section 362 of the Bankruptcy Code. The automatic stay temporarily halts actions by creditors to collect debts, allowing the debtor to reorganize their finances. Additionally, the motion may request the abandonment of certain property under Section 554, which allows a bankruptcy trustee to relinquish their interest in property that is burdensome or of little value to the estate.
Table of content
Legal use & context
This motion is primarily used in bankruptcy proceedings, particularly in Chapter 7 cases. It allows secured creditors to regain access to their collateral when the debtor is unable to maintain payments. Users can manage this process by utilizing legal templates available through US Legal Forms, which can help streamline the filing of the motion and ensure compliance with court requirements.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A creditor files a motion for relief from stay to repossess a vehicle after the debtor fails to make payments. The court holds a hearing and grants the motion, allowing the creditor to reclaim the vehicle.
Example 2: A bankruptcy trustee files a motion to abandon a rental property that is losing money and has no equity, determining it is not beneficial to the estate. (hypothetical example)
Relevant laws & statutes
The primary statutes governing motions for relief from stay and abandonment are:
11 U.S.C. § 362 - Automatic Stay
11 U.S.C. § 554 - Abandonment of Property
Comparison with related terms
Term
Definition
Key Differences
Motion for Relief from Stay
A request to lift the automatic stay in bankruptcy.
Focuses on creditor rights and property recovery.
Motion to Abandon
A request to relinquish interest in property.
Primarily concerns the trustee's decision on property value.
Common misunderstandings
What to do if this term applies to you
If you find yourself needing to file a motion for relief from stay or abandonment, consider the following steps:
Gather all relevant documentation regarding the property and your financial situation.
Consult with a legal professional to understand your rights and options.
Utilize US Legal Forms to access templates for filing your motion correctly.
Find a legal form that suits your needs
Browse our library of 85,000+ state-specific legal templates.