How to Revoke a Stay on a Chapter 13 Bankruptcy
When a debtor files for Chapter 7 or 13 bankruptcy, the bankruptcy court grants an automatic stay that stops all creditors from continuing collection efforts. Creditors cannot call, send letters or place liens against your property to collect outstanding debts once an automatic stay is in place. To reinstate collection efforts, however, the creditor must ask the bankruptcy court to lift the stay, also called "revoke the stay" or "remove the stay."
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Instructions
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How to Lift a Stay in Bankruptcy
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File a Petition to Lift Automatic Stay with the bankruptcy court that is hearing the debtor's Chapter 13 bankruptcy case and pay the appropriate filing fee, if any. After the petition is filed, the bankruptcy court clerk will set a date when oral arguments regarding the automatic stay can be heard by the judge.
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Explain to the court during the hearing why the automatic stay should be lifted. Most commonly, an automatic stay will be revoked, removed, annulled or amended only when removal is in the creditor's best interest and when failing to remove the stay will cause irreparable harm to the creditor. For example, the automatic stay may be lifted or amended for a mortgage lender (creditor) trying to foreclose on a house.
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Begin collection attempts once the automatic stay is lifted by the bankruptcy court.
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Tips & Warnings
An automatic stay does not cease collection attempts made by creditors trying to collect past due child support, alimony or taxes.
