What is a “stay relief” in a Chapter 11 bankruptcy?

A "stay relief" is a mechanism in a Chapter 11 bankruptcy that stops creditors from continuing collection efforts. The term "stay" refers to the automatic stay provision of the Bankruptcy Code, which prohibits most collection actions against a debtor during the bankruptcy case. In general, if you owe a creditor money and you file for bankruptcy, that creditor cannot collect on its debt from you. The automatic stay protects your assets from creditors, who are now prohibited from taking any action against you until such time as your bankruptcy case is resolved. For example, if you have an account with $100 in it and file for bankruptcy protection, your bank cannot seize that $100 because of the automatic stay. The stay relief only applies to debts related to the debtor's business or household, so credit card debts and other personal debts are not protected.

If you have more questions about bankruptcy or the automatic stay in bankruptcy, how it works, and when it applies, call this law firm for a free consultation

Ascent Law LLC

8833 S Redwood Rd Ste C

West Jordan UT 84088

(801) 676-5506

https://g.page/AscentLaw

https://www.ascentlawfirm.com/chapter-11-bankruptcy-lawyer/

 

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