Termination of Automatic Stay in Chapter 13 Bankruptcy
Termination of Automatic Stay in Chapter 13 bankruptcy case can happen voluntarily and involuntarily.
If a debtor chooses to surrender property the an unopposed motion for relief from automatic stay can be entered with the court to allow the creditor to repossess or foreclose on the collateral.
If a debtor had fallen behind with secured creditor at any point in Chapter 13 case then they likely have signed agreed order filed with the court to cure any delinquency. The agreed order will generally allow 2 notices of defaults of Chapter 13 debtor falls behind on payments to the Chapter 13 Trustee or on direct payments to secured creditor. If the default is not secured within 10 days, or specified time per the Notice of default, then the creditor can terminate the automatic stay without further action.
Once the automatic stay is terminated then the Chapter 13 debtor can contact the creditor directly to make arrangements to keep home or vehicle. If this in relation to a mortgage, many Chapter 13 debtors can contact mortgage company to make arrangements for forbearance agreement or loan modification to allow them to keep home.
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