What is a “motion to extend the automatic stay” in a Chapter 11 bankruptcy?

A “motion to extend the automatic stay” is a motion that can be filed in a Chapter 11 bankruptcy in Minnesota. This motion is designed to protect a debtor from having creditors take action against them while the bankruptcy is being processed. When a Chapter 11 bankruptcy is initiated, the court puts an automatic stay in place. This stay prevents creditors from taking any action against the debtor while the bankruptcy is pending. It gives the debtor the time to reorganize their finances and come up with a repayment plan to their creditors. The automatic stay is typically in place for up to 90 days, but that period can be extended. A motion to extend the automatic stay is a motion that a debtor can file with the court to request an extension. This motion will detail the reasons why the debtor needs more time to reorganize their finances. A motion to extend the automatic stay is a powerful tool in Chapter 11 bankruptcy law in Minnesota. It can give a debtor more time to restructure their finances, which will make it easier for them to repay their creditors. It also provides the debtor with some peace of mind, knowing that their creditors will not be able to take any action against them while their bankruptcy is pending.

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What is a “motion to extend the automatic stay” in a Chapter 11 bankruptcy?

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