Why will a creditor file a motion for relief from stay?
— Anonymous A. There are two common fact patterns that drive creditors to seek relief from stay. The most frequent is a secured creditor who isn’t getting payments on its loan seeking to foreclose a house or repossess a car. Failure to have insurance in place to protect the secured creditor is another ground for seeking relief from stay. A less common situation is where the debtor is one of several defendants in lawsuit and the plaintiff fears an inconsistent verdict or other inefficiencies if the debtor is excluded from trial.
