Bankruptcy Court Litigation: Automatic Stay Relief Motions

Bankruptcy Attorneys Automatic Stay Relief NJ

Our New Jersey bankruptcy lawyers represent creditors in obtaining relief from the automatic stay created by a bankruptcy filing.

The automatic stay is a unique feature of the Bankruptcy Code. The stay creates an automatic injunction prohibiting certain creditors, with certain exceptions, from pursuing collection actions against the debtor. Pursuant to Bankruptcy Code Section 362 the stay begins at the moment the bankruptcy petition is filed. Creditors may, however, ask the bankruptcy court for relief from the automatic stay to continue a pre-bankruptcy lawsuit.

In 2005, Congress added two important exceptions to the automatic stay provisions. These exceptions concern landlords seeking to evict tenants. First, any eviction proceedings in which the landlord obtained a judgment of possession to the filing of the bankruptcy petition may be continued. Second, eviction proceedings filed post-bankruptcy are exempt if the landlord pursues eviction because of illegal substances or “endangerment” of the property.

The Bankruptcy Abuse Prevention and Consumer Protection Act ^[1] added restrictions to Bankruptcy Code Section 362. If the debtor had a case dismissed in a case pending during the year before the bankruptcy case was filed, the automatic stay will expire to a certain extent unless the debtor obtains an order extending it within one month. If the debtor had two cases pending in the year prior to filing, the automatic stay does not go into effect unless the debtor files a motion.

Our bankruptcy lawyers regularly represent a broad spectrum of creditors before the United States Bankruptcy Court for the District of New Jersey ^[2] including:

Bankruptcy Attorneys Automatic Stay Relief NJ

Are you creditor requiring assistance in prosecuting a motion for relief from the automatic stay?