Tag Archives: opposition to motion for relief from stay

Opposition to a motion for relief from the automatic stay

An opposition to a motion for relief from the automatic stay is the topic of this blog post.

This blog post will discuss the filing of an opposition to a motion for relief from the automatic stay in United States Bankruptcy Court.

Deadline for filing opposition to a motion for relief from the automatic stay.

The deadline for filing an opposition to a motion for relief from automatic stay may vary with each individual Court, but as a general rule the opposition should be served and filed at least fourteen (14) calendar days before the hearing, unless the notice of motion states otherwise, the local rules specify, or the Court has ordered otherwise.

It must be stressed that the failure to file and serve a timely opposition to a motion for relief from the automatic stay may be construed by the Court as an admission that the motion has merit and should be granted. Thus a party who wishes to oppose the motion for relief from the automatic stay should do everything possible to ensure that a timely opposition is served and filed.

The automatic stay prevents creditors from taking certain actions once a petition for relief under the Bankruptcy Code has been filed. Those actions include but are not limited to, commencing or continuing any legal actions or proceedings against the debtor in another Court. It also includes attempting to collect on any judgment against the debtor that was entered in another Court before the Bankruptcy case was filed.

11 U.S.C .§ 362a states in relevant part: “Except as provided in subsection (b) of this section, a petition filed under section 301, 302, or 303 of this title, or an application filed under section 5(a)(3) of the Securities Investor Protection Act of 1970, operates as a stay, applicable to all entities, of–(1) the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title…”

Grounds for filing an opposition to a motion for relief from the automatic stay.

The party requesting relief from the automatic stay bears the burden of establishing a prima facie case that “cause” exists for relief from the automatic stay. If the moving party fails to meet its initial burden relief should be denied.

“The burden of proof on a motion to modify the automatic stay is a shifting one. To obtain relief from the automatic stay, the party seeking relief must first establish a prima facie case that “cause” exists for relief under § 362(d)(1). Once a prima facie case has been established, the burden shifts to the debtor to show that relief from the stay is unwarranted. If the movant fails to meet its initial burden to demonstrate cause, relief from the automatic stay should be denied.” In re Plumberex Specialty Products, Inc. 311 B.R. 551, 557 (Bkrtcy.C.D.Cal.,2004) (internal citations and quotations omitted).

The moving party must establish a factual and legal right to the relief that it is seeking.

“A prima facie case requires the movant to establish “a factual and legal right to the relief that it seeks.” In re Plumberex Specialty Products, Inc. , supra at FN 11.

In some cases the moving party will have to show that the debtor’s actions constitute a clear abuse of the bankruptcy process, in other words bad faith on the part of the debtor.

“The existence of good faith depends on an amalgam of factors and not upon a specific fact. The test is whether the debtor is attempting to unreasonably deter and harass creditors or attempting to effect a speedy, efficient reorganization on a feasible basis. Good faith is lacking only when the debtor’s actions constitute a clear abuse of the bankruptcy process.” In re Plumberex Specialty Products, Inc., supra at 559.

Any party that is served with a motion for relief from the automatic stay should carefully review the motion and supporting documents to determine if the moving party has met its initial burden. Many times a party will file a motion for relief with very little if any, supporting facts to support their motion hoping to gain some leverage for possible settlement negotiations.

Sample opposition to a motion for relief from the automatic stay for sale.

Attorneys or parties in California who wish to view a portion of a sample opposition to a motion for relief from the automatic stay in United States Bankruptcy Court can see below.

 

Federal document collection with over 40 documents including a sample motion for relief from the automatic stay for sale.

Federal litigation document package

 

The author of this blog post, Stan Burman, is a freelance paralegal who has worked in California and Federal litigation since 1995.

If you are in need of assistance with any California or Federal litigation matters, Mr. Burman is available on a freelance basis. Mr. Burman may be contacted by e-mail at DivParalgl@yahoo.com for more information. He accepts payments through PayPal which means that you can pay using most credit or debit cards.

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DISCLAIMER:

Please note that the author of this blog post, Stan Burman is NOT an attorney and as such is unable to provide any specific legal advice. The author is NOT engaged in providing any legal, financial, or other professional services, and any information contained in this blog post is NOT intended to constitute legal advice.

These materials and information contained in this blog post have been prepared by Stan Burman for informational purposes only and are not legal advice. Transmission of the information contained in this blog post is not intended to create, and receipt does not constitute, any business relationship between the author and any readers. Readers should not act upon this information without seeking professional counsel.