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Automatic Stay:  § 362:  Continue / Extend Stay: TRUSTEE FILES MOTION

4001-1(d)-CONT.TEE:  Automatic Stay:  § 362:  Continue / Extend Stay: TRUSTEE FILES MOTION

Under Bankruptcy Code section 362(a), the "automatic stay" applies at the moment a bankruptcy petition is filed.  This offers protection from creditors who must file a "Relief from Stay" motion to ask the judge to terminate the stay to take action against the debtor, the debtor's property, or property of the estate.

However, Bankruptcy Code section 362(c), the automatic stay may end 30 days after the petition is filed, if the debtor filed one bankruptcy case within the year before the debtor filed the current bankruptcy petition.  In this situation, the debtor or the case trustee may file a motion to continue the stay beyond the 30-day period.  When the trustee files this motion, the purpose is to preserve property of the estate so the trustee can use the property to satisfy claims of creditors.

  • The court has a mandatory form for the trustee to use to ask the court to continue the stay.  See link below
  • This motion is sometimes called a motion to extend the stay.
Section: 
Section 4 - Match Local Bankruptcy Rules with Forms
Section Number or LBR Number: 
4001-1(d)-CONT.TEE