What is a motion to modify the automatic stay in Chapter 13 Bankruptcy?

A motion to modify the automatic stay in Chapter 13 Bankruptcy Law in California means that the debtor can ask the court to adjust the automatic stay, or the protection of their assets, during the bankruptcy proceedings. The automatic stay is a court order that prevents creditors from taking any action against the debtor’s assets until the bankruptcy proceedings have concluded. In order to modify the stay, the debtor must file a motion with the court and explain why they need the stay to be adjusted or suspended. The motion could include a request to allow creditors to proceed with a foreclosure, repossession, or other actions that are usually suspended by the automatic stay, in order for the debtor to be able to make the necessary payments under their Chapter 13 plan. The court will decide whether to approve the request based on factors including the type of action requested, the debtor’s current financial situation, and how the modification will benefit the debtor and their creditors. The court may also require the debtor to provide proof that the action will not significantly harm their creditors. They will also evaluate the debtor’s ability to adequately repay the creditors, and the impact the modification will have on the overall case and the plan. If the court approves the motion, they will issue an order that modifies the automatic stay to allow creditors to proceed.

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What is a motion to modify the automatic stay in Chapter 13 Bankruptcy?

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