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

A motion to extend the automatic stay is a legal motion filed in a Chapter 11 bankruptcy in West Virginia. The automatic stay is an order from the court that stops creditors from collecting debt from the debtor. This order is effective as soon as the bankruptcy petition is filed. The automatic stay is usually in effect for a period of 30 days, but the court can extend that period if necessary. A motion to extend the automatic stay is filed when the debtor needs more time for the bankruptcy process. During this extension period, the debtor can benefit from the protection of the automatic stay while working to restructure the debt. The debtor can use this time to reorganize the debt, renegotiate payment terms with creditors, and come up with a plan that will provide the debt relief needed. The motion to extend the automatic stay must be filed with the bankruptcy court. The motion must be supported with evidence that the debtor needs more time to complete the bankruptcy process. The court will review the motion and decide if the extension is warranted. If the court grants the motion, the automatic stay will continue until the bankruptcy process is completed.

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

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