Motions to Lift Stay in Bankruptcy

A motion to lift stay is an action by a creditor to asked the bankruptcy court to end the automatic stay that the debtor enjoys upon the filing of the case to stop the creditor’s actions.

A mortgage lender or a car company typically asks for the automatic stay to be lifted in Chapter 7 bankruptcy when the debtor is not current on the loan obligation when either the case starts or starts defaulting after the case is filed. So if the debtor is in Chapter 7, but is current on their mortgage or car payment, the lender is probably not can ask the court to lift the automatic stay. If it does make that request, the debtor is probably going to successfully stop that request.

In a chapter 13 bankruptcy, the creditor is presumably only been asked to lift the automatic stay if the debtor is in default of their mortgage or car payments since the case was filed, or is in default of their trustee payments. As long as the debtor is making the payments according to the plan and/or directly to the lender, there would be no reason for the automatic stay to be lifted at any point during the entirety of the case and Chapter 13 bankruptcy.