What is an example of a relief from stay?

Minneapolis Bankruptcy attorney Steven Silton discusses examples of a cause that can trigger a relief from stay.

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A relief from stay is an action that’s commenced by a creditor of the debtor in order to proceed with collection of a claim. A relief from stay is granted by the courts for what’s termed cause, which is a legal term which can encompass a whole bunch of circumstances specifically a lack of adequate protection. There can be many examples of relief from stay. One of them can be where the debtor is a minor player in an existing piece of litigation and instead of stopping the litigation as a whole, they’ll allow the matter to go forward.

Another example of relief from stay that’s very common is when someone’s trying to pursue their collateral pursuant to a secured loan and the creditor is not protected by the value of that collateral. The courts under some circumstances particularly when that collateral isn’t integral to the operations of the debtor will allow that creditor to come in and get that collateral back.