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 legal document filed with the court that requests permission to take an action that would normally be blocked by the automatic stay. The stay is a protection from creditors that is automatically granted when a person files for bankruptcy. This document, or motion, allows creditors to seek a lifting of the stay to take specific action such as foreclosing on their property or repossessing their vehicle. It also allows creditors to enforce their rights, such as collecting on a debt or pursuing other legal action. The motion must include justification, such as the value of the asset or other facts that support the creditor’s position. The debtor may file an objection to the motion, and a hearing may be held to decide if the stay should be modified. The court may deny the motion or accept it with conditions. If the motion is granted, the court will issue an order that outlines the parameters of the stay modification. As long as the debtor is making payments and meeting other obligations under their Chapter 13 Bankruptcy plan, the automatic stay will be in effect and creditors will not be able to take any action against the debtor. However, filing a motion to modify the stay allows creditors an opportunity to force action on the debtor. It should be noted that the granting of a motion to modify the stay does not mean the debt is no longer valid, but instead just allows for collection efforts by creditors to proceed.

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