An order for relief is a court order that officially places a debtor under the jurisdiction of the bankruptcy court. This order signifies that the debtor can seek a discharge from all debts incurred before the order was issued. In bankruptcy proceedings, a voluntary petition filed by the debtor automatically acts as an order for relief.
The term "order for relief" is primarily used in bankruptcy law. It is relevant in both personal and business bankruptcy cases. When a debtor files a voluntary petition, the court issues an order for relief, allowing the debtor to reorganize or liquidate their debts. Users can manage this process themselves using legal templates available from US Legal Forms, which are designed by experienced attorneys.
Here are a couple of examples of abatement:
Example 1: A small business owner files a voluntary petition for Chapter 7 bankruptcy. The court issues an order for relief, allowing the business to liquidate its assets and discharge its debts.
Example 2: An individual facing overwhelming credit card debt files for Chapter 13 bankruptcy. The court issues an order for relief, enabling them to create a repayment plan to pay off their debts over three to five years. (hypothetical example)
The primary statute governing the order for relief is found in the U.S. Bankruptcy Code. Specifically, 11 U.S.C. § 301 states that the commencement of a voluntary case constitutes an order for relief.
| Term | Definition |
|---|---|
| Order for Relief | A court order that allows a debtor to begin bankruptcy proceedings. |
| Discharge | The elimination of a debtor's obligation to pay certain debts. |
| Voluntary Petition | A formal request filed by a debtor to initiate bankruptcy proceedings. |
If you find yourself in a situation where an order for relief may apply, consider the following steps:
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| Attribute | Details |
|---|---|
| Typical Fees | Varies by state and complexity of the case. |
| Jurisdiction | Federal bankruptcy court. |
| Possible Penalties | Fraudulent filings can lead to denial of discharge and legal penalties. |
An order for relief is a court order that allows a debtor to begin bankruptcy proceedings and seek discharge from debts.