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 request made to a bankruptcy court to prevent creditors from taking actions to collect debts from the debtor, such as filing lawsuits or seizing property. This request is made to the court after the debtor has filed a Chapter 11 bankruptcy petition. The automatic stay is an injunction issued by the court that prohibits creditors from taking any action against the debtor or the debtor’s property. The court will usually issue the stay as soon as the bankruptcy petition is filed. This stay remains in effect until the court sets a hearing or other proceedings to consider the motion to extend the stay. The motion to extend the stay is typically made by the debtor or the debtor’s attorney to the court in which the Chapter 11 petition was filed. The motion identifies the creditors who the debtor wants the court to protect by extending the automatic stay. The debtor must explain the reasons why the creditor should be protected. In North Dakota, the motion to extend the automatic stay in a Chapter 11 bankruptcy must be filed within 30 days of the petition filing. The court then decides whether a hearing is necessary and will generally grant a hearing if the motion has merit. The court will determine whether to extend the automatic stay after considering the creditor’s response and other evidence presented at the hearing. The decision to extend the automatic stay is made at the court’s discretion.

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

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