Motion for Relief from Automatic Stay

Motion for Relief from Automatic Stay

Drafts a procedurally compliant motion under 11 U.S.C. § 362(d) to lift the automatic stay. Ensures compliance with FRBP 4001, 9014, and local rules.

Prerequisites

1. Loan/lease documents — note, security agreement, deed of trust, UCC filings
2. Perfection evidence — recording info, UCC-1 receipts, title reports
3. Payment history — account ledger, defaults, arrearage calculation
4. Valuation evidence — appraisal, BPO, tax assessment, or comparables
5. Bankruptcy case info — case number, chapter, filing date, court/district/division, debtor name
6. Post-petition facts — adequate protection payments, insurance status, property condition

Quick Start

1. Gather all prerequisites; confirm statutory ground(s): § 362(d)(1), (d)(2), and/or (d)(3)
2. Draft caption with exact debtor name, case number, chapter, and movant capacity
3. Build chronological fact section from loan origination through post-petition default
4. Draft legal argument matching each ground to evidentiary support
5. Prepare supporting declaration with FRE 803(6) foundation and exhibit list
6. Verify service list and 21-day notice requirement under FRBP 4001

Output Structure

1. Caption & Case Identification

2. Introduction

• Movant identity, relationship to debtor, collateral description
• Specific relief sought: termination / modification / annulment
• Statutory basis and procedural context (filing date, stay duration, deadlines)

3. Factual Background

Present chronologically:

• Pre-petition: Transaction date, principal, rate, terms, maturity; guarantors/co-borrowers
• Collateral: Legal description (real property) or make/model/VIN (personal property); recording/UCC-1 data; perfection method and priority position
• Default: First missed payment, arrearage itemization (principal, interest, late charges, fees), pre-petition collection efforts, failed workout attempts
• Post-petition impact: How stay halted remedies; insurance lapses; waste/deterioration; missed adequate protection payments

4. Legal Argument

§ 362(d)(1) — Cause / Lack of Adequate Protection

• Define adequate protection under § 361 (cash payments, replacement liens, indubitable equivalent)
• Show declining collateral value with appraisal support (petition-date vs. current)
• Calculate equity cushion; cite circuit authority on minimum threshold (typically ≥ 20%)
• Show post-petition payments insufficient to cover accruing interest + depreciation
• Additional cause if applicable: bad faith/serial filing, no reorganization prospect, violation of prior orders
• Burden: under § 362(g)(2), debtor bears burden on adequate protection

§ 362(d)(2) — No Equity + Not Necessary for Reorganization

• No equity (movant's burden, § 362(g)(1)): Current FMV, all liens in priority order, total encumbrances > FMV
• Not necessary for reorganization:
  • Ch. 7: liquidation; reorganization element inapplicable
  • Ch. 11: no plan filed / not confirmable / business not viable
  • Ch. 13: cannot afford payments + cure / insufficient income
• Cite circuit authority: debtor must show "reasonable possibility of successful reorganization within a reasonable time"

§ 362(d)(3) — Single Asset Real Estate (if applicable)

• Debtor qualifies as SARE under § 101(51B)
• Failed to file plan or begin interest payments within 90 days

5. Prayer for Relief

• Relief from stay to exercise non-bankruptcy remedies (specify: foreclose, repossess, litigate)
• Address FRBP 4001(a)(3) 14-day stay: request waiver if emergency
• Without prejudice to seek further relief
• Attorney's fees and costs (cite contractual or statutory basis)

6. Supporting Declaration

Declarant must have personal knowledge (loan servicer, asset manager, corporate representative).

• Position, responsibilities, familiarity with account
• Business records foundation under FRE 803(6)
• Factual narrative supporting all motion allegations
• Post-petition communications and adequate protection history
• Current collateral condition and value

7. Exhibits

Each exhibit referenced in declaration with FRE 803(6) authentication.

8. Service & Certificate

Service list: Debtor, debtor's counsel, U.S. Trustee, Ch. 7/13 Trustee (if appointed), special notice parties (Rule 2002), corporate debtors per Rule 7004.

Timing: Serve ≥ 21 days before hearing. File motion to shorten time if emergency.

Certificate: Party name, address, method (CM/ECF or mail), date served.

Checks

• Use persuasive point headings stating conclusions, not neutral labels
• Cite specific numbers, dates, and exhibits — avoid conclusory statements
• Prioritize binding circuit/district authority with parentheticals
• Preemptively distinguish likely adverse authority
• Verify all Bluebook citations and local standing orders (mediation, certification, proposed order format)
• Local formatting: 12pt Times New Roman/Arial, 1" margins, double-spaced, consecutive paragraph numbering
• Signature block: /s/ format, bar number, firm, address, phone, email
• Emergency relief requires separate motion to shorten time
• Tone: professional, forceful, respectful