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

A “Motion to Extend the Automatic Stay” in a Chapter 11 Bankruptcy is a legal request filed with the court to prevent creditors from taking any action against a debtor. When a debtor files for Chapter 11 Bankruptcy in Missouri, an “automatic stay” is issued which prevents creditors from collecting any debts or taking any other action against the debtor. The stay is in effect for 30 days under Missouri law, but creditors can ask the court to lift the stay. In order to keep the stay in effect, the debtor must file a Motion to Extend the Automatic Stay. This motion requests that the court extend the automatic stay to give the debtor more time to reorganize or settle the debts. The court may extend the stay for an undetermined amount of time, depending on the specific circumstances, or the court may decline the request and lift the stay. The stay helps the debtor reorganize their finances and negotiate with the creditors. This gives the debtor more time to pay back or settle the debts, and also prevents creditors from taking any action against the debtor while the bankruptcy is pending. A motion to extend the automatic stay is an important step in the Chapter 11 Bankruptcy process and can be a critical tool for debtors in Missouri.

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

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