What is a relief of stay?

Asked by: Amelie Hermiston II  |  Last update: February 20, 2026
Score: 4.7/5 (61 votes)

A "relief of stay," or more formally, a Motion for Relief from the Automatic Stay, is a legal request a creditor files in bankruptcy court asking the judge to lift the "automatic stay," which normally stops creditors from collecting debts or seizing property once someone files for bankruptcy. Essentially, it's a creditor's way of getting permission to continue foreclosure, repossession, or other collection efforts on specific assets, often because the debtor isn't paying secured loans (like mortgages or car loans) or isn't keeping up with the bankruptcy plan.

What does a relief from stay mean?

The bankruptcy court will consider the creditor's motion and the debtor's response before making a decision. If the court grants the motion for relief from stay, it allows the creditor to resume collection or foreclosure actions against the debtor or the debtor's property.

What does stay mean in court terms?

Stay is an action taken by a court to stop a legal proceeding or the actions of a party. A stay most commonly is issued by a court as a stay of proceedings in order to stop litigation from continuing, and they normally are only temporary.

What are the grounds for relief from the automatic stay?

Under section 362(d)(2) the court may alternatively terminate, annul, modify, or condition the automatic stay for cause including inadequate protection for the creditor. The court shall grant relief from the stay if there is no equity and it is not necessary to an effective reorganization of the debtor.

What is the burden of proof in a motion for relief from stay?

Creditors have the burden of proof on a motion for relief from stay under Section 362(d) on the issue of the debtor's equity in the property, and the debtor has the burden of proof on all other issues.

What is an example of a relief from stay?

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What are the three burdens of proof?

The three main burdens (or standards) of proof in law, from lowest to highest, are Preponderance of the Evidence, required for most civil cases (more likely than not); Clear and Convincing Evidence, used in certain civil matters needing higher certainty; and Beyond a Reasonable Doubt, the strict standard for criminal convictions, meaning near-certainty of guilt.
 

How to fight a motion for relief from automatic stay?

How Can Debtors Defend Against a Motion for Relief from an Automatic Stay?

  1. Inadequate Notice. ...
  2. Lack of Standing to File. ...
  3. Preserving the Stay is Necessary to Enable the Debtor's Reorganization. ...
  4. Harm to the Debtor Would Outweigh the Benefits to the Creditor Seeking Relief. ...
  5. Defenses to the Underlying Debt.

What cannot be wiped out by bankruptcies?

Debts that generally cannot be discharged in bankruptcy include child support, alimony, most student loans, certain recent taxes, court-ordered fines and restitution, debts from fraud, and personal injury judgments from DUI-related incidents; these obligations are prioritized by law or result from wrongful conduct and must usually be repaid. 

How do you know if your lawyer is selling you out?

How Can You Tell Or Know If Your Lawyer Is Selling You Out?

  • Your Lawyer Appears To Be Uninterested In Your Case.
  • You Are Being Pushed To Decide Quickly To Settle Your Case By Your Lawyer.
  • Lack Of Communication: Ignoring Your Calls And Not Returning Them.
  • Lack Of Transparency And Honesty In Billing And Payments.

What happens after a stay is lifted?

If the automatic stay is lifted, it means a creditor has successfully petitioned the bankruptcy court to remove these protections for a specific debt. Once the stay is lifted, that creditor can resume collection actions for that debt, such as repossessing your car or foreclosing on your home.

What happens after a stay?

What are the effects of a Stay Order? When the Stay Orders are granted by a Court, a motion for a stay pending appeal prevents that Court from carrying out its verdict until the appeal is heard (California Rules of the Court §3.515).

Is a stay the same as dismissal?

A stay pauses a case, while a dismissal ends it. Stays maintain the case's status for future action, but dismissals close it, either permanently or with refiling options. Stays address temporary issues, such as awaiting evidence, whereas dismissals stem from final rulings, like lack of jurisdiction.

Why would someone file a motion to stay?

You should pursue a "stay" of the trial court's order to avoid this outcome. This will help you temporarily put the consequences of the ruling on hold. Generally, a" motion to stay a sentence pending appeal" stops the commencement of sentencing and penalties if your appeal is in process.

What are common grounds for relief?

Grounds for Relief

  • Inadvertence, surprise, mistake, or excusable neglect (CCP § 473(b)) ...
  • Party not given actual notice in time to defend (CCP § 473.5) ...
  • Party not given actual notice in time to defend action brought by a debt buyer (Civ § 1788.61) ...
  • Void judgments (CCP § 473(d)) ...
  • On the Web: ...
  • At the Law Library:

How long does an automatic stay last?

The automatic stay remains in effect until your case is closed. But, of course, it isn't always that simple. For Chapter 7, it's often the case that a stay will last the 3-5 months the court case is open. For Chapter 13, bankruptcy cases could take anywhere from 3-5 years.

What is a motion for relief from stay to pursue insurance proceeds?

Courts typically grant stay relief when the claimant agrees to limit recovery to insurance proceeds. This arrangement protects the bankruptcy estate while allowing the injured party to pursue their claim—a compromise that courts generally favor because it balances the interests of all parties involved.

What not to say to your lawyer?

You should not tell a lawyer to downplay injuries, admit fault, lie, exaggerate, withhold details, or trash-talk others involved; avoid telling them how to do their job, comparing them to other lawyers, being overly casual (like saying "you guys"), or discussing irrelevant personal info, as honesty is key, but focus on facts and let the lawyer guide strategy, especially regarding admissions or social media posts.
 

What is the hardest case to win in court?

The hardest cases to win in court often involve high emotional stakes, like crimes against children or sexual assault, where jurors struggle with bias; complex, voluminous evidence, such as white-collar fraud; and defenses that challenge societal norms, like an insanity plea, which faces high scrutiny and conflicting expert testimony. Cases with weak physical evidence, uncooperative witnesses (like in sex crimes), or those involving unpopular defendants (e.g., child abusers) are particularly challenging for defense attorneys.
 

Is $400 an hour a lot for a lawyer?

Yes, $400 an hour is a significant rate for a lawyer, often reflecting experience, specialization, and location, falling at the higher end of average rates ($100-$400+) but can be standard or even considered a "deal" for highly specialized work in major cities, while being quite expensive in other areas or for less complex cases. Factors like the firm's size, location (big city vs. rural), the lawyer's expertise (e.g., corporate, IP vs. family law), and case complexity greatly influence this rate. 

What debts never go away?

Bankruptcy is a great way to get rid of credit card debt, medical bills, and personal and payday loans. But bankruptcy can't wipe out recent income tax you owe, alimony, child support, or debt incurred from illegal acts (embezzlement, larceny, etc.).

What is the 777 rule for debt collectors?

The "777 rule" in debt collection refers to key call frequency limits in the CFPB's Regulation F, stating collectors can't call a consumer more than seven times within seven days, or call within seven days after a phone conversation about the debt, applying per debt to prevent harassment. These limits cover missed calls and voicemails but exclude calls with prior consent, requests for information, or payments, and are presumptions that can be challenged by unusual call patterns. 

What does a motion for relief from stay mean?

A motion for relief from stay, sometimes called a motion to lift stay, is a formal request a creditor makes during a bankruptcy case. By filing this motion, the creditor is essentially asking the court for permission to move forward with certain collection actions against a debtor's property—despite the automatic stay.

What is the lowest a debt collector will settle for?

Debt collectors might settle for 25% to 50%, but it varies widely; debt buyers often accept lower offers (sometimes 10-30%) for old debt, while original creditors usually want more (50-75% or higher), especially for newer debts or if a lawsuit is involved, with factors like your hardship and lump-sum payments influencing the final percentage. 

How much evidence is needed to go to trial?

The burden of proof in a civil case only requires a preponderance of evidence, which is a lower threshold than proof beyond a reasonable doubt. For someone to be charged with a crime, probable cause is required. Criminal cases require a jury to consider statements made for and against the accused.

Who beats the burden of proof?

In most cases, the burden of proof rests solely on the prosecution, negating the need for a defense of this kind. However, when exceptions arise and the burden of proof has been shifted to the defendant, they are required to establish a defense that bears an "air of reality".