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

A motion to modify the automatic stay in Chapter 13 Bankruptcy is a request for authorization from the court to take an action that could otherwise be prohibited by law during the bankruptcy proceedings. An automatic stay is an injunction that acts as a temporary freeze on certain proceedings, such as the ability of creditors to take action to collect a debt or to foreclosure on a house. Whenever a debtor files for Chapter 13 Bankruptcy, an automatic stay is placed on all collection activities by creditors. However, under certain circumstances, a creditor may petition the court to modify the automatic stay. When a creditor files a motion to modify the automatic stay, they are asking the court to allow them to take specific action in spite of the automatic stay. For example, a creditor may ask the court to let them foreclose on a house or to take other steps to collect a debt. In most cases, the court will only grant a motion to modify the automatic stay if the debtor has failed to make payments on the debt or if the creditor can demonstrate that the motion is necessary to protect their interests. If the court grants the motion, the automatic stay will be lifted, allowing the creditor to proceed with the requested action.

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

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