Motion for Relief from Stay

A motion requesting the court to terminate, annul, modify, or condition the automatic stay to permit the creditor to take action against a debtor or a debtor’s property.

The basic grounds for granting such relief are—(1) for cause, including the lack or adequate protection of an interest in property or (2) against property if the debtor has no equity in the property and the property is not necessary to an effective reorganization.

The lender has additional protection if its collateral is single asset real estate (see Single Asset Real Estate). The court will grant stay relief on single asset real estate collateral not later than 90 days after the order for relief (or such later date as the court determines during this 90 day period) or 30 days after the court determines that the debtor is subject to single asset real estate provisions, unless the debtor has either:

(a) filed a plan of reorganization that has a reasonable possibility of being confirmed within a reasonable time, or (b) commenced monthly payments equal to interest at the then applicable nondefault contract rate of interest on the value of the creditor’s interest in the real estate.

Bankruptcy Code § 362(d). See also Automatic Stay, Necessary To An Effective Reorganization, Single Asset Real Estate.

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