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

A motion to modify the automatic stay is a request to change or modify the time frame of the automatic stay that is put in place by filing for Chapter 13 bankruptcy in Virginia. The automatic stay is an order from the court that prevents creditors from taking any action to collect a debt after the bankruptcy filing is complete. When a debtor files for Chapter 13 bankruptcy, the court-issued automatic stay will remain in effect until the bankruptcy case is closed. However, certain creditors may have valid reasons to request that the automatic stay be modified or lifted. A motion to modify the automatic stay allows a creditor to request the court to either shorten or extend the duration of the stay, depending on their specific needs. For example, a creditor may need to modify the automatic stay in order to foreclose on a debtor’s home or repossess their car if the debtor falls behind on their bankruptcy payments. The debtor may be able to negotiate with the creditor to prevent them from taking action by filing a motion to modify the automatic stay. The alternative is to continue making payments on the debt in order to satisfy the creditor’s claim. Overall, a motion to modify the automatic stay in Chapter 13 bankruptcy can be used by creditors or debtors to alter the time frame of the stay, allowing for more flexibility when attempting to negotiate payments or collection activities.

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

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