Lifting The Stay In Chapter 7 Cases

Any creditor may request the termination of court protection provided by the prohibition against further collection efforts. Creditors must file a motion to lift stay which requires notice and hearing. After the debtor receives notice, if a response in opposition is filed, the court usually schedules a hearing. During the hearing and order lifting the automatic stay must be founded on one of the established exceptions listed in Section 362 of the Code. For example, utility companies may terminate service after 15 days of nonpayment following the filing of a petition. More importantly, mortgage creditors will be awarded an order for foreclosure if past due amounts remain in arrears. Overall, most exceptions relate to secured property and reestablishing rights for creditors who are subject to ongoing damages.