What is a Motion to Vacate Stay?

A Motion to Vacate Stay is a formal request by one of your creditors to eliminate the protections of the Bankruptcy.  When a Court grants this request, the stay is cancelled.  Your creditors will then be able to enforce their claims & resume collection efforts against you in State Court.  Motions for relief must be served on Debtor & Debtor’s Attorney.  Do not ignore a Motion to Vacate Stay.  If you do, the Court may grant the motion as unopposed.  The most common reason for a Creditor to file a Motion to Vacate Stay is when the debtor becomes delinquent in post-petition outside of plan payments.  In the case of a car loan, a motion may also be brought if the vehicle in question is not insured.