Automatic Stay Objection
(11 U.S.C. § 362(d)(1))

Summary

This template is for use by a debtor objecting to a motion to lift the automatic stay for cause. This template includes practical guidance, drafting notes, and an optional clause. The automatic stay under Section 362 of the Bankruptcy Code is extremely broad and prevents creditors from taking almost any action outside of the supervision of the bankruptcy court. A party in interest can seek relief from this automatic stay by filing a motion under Section 362(d). Section 362(d)(1)–(4) is disjunctive, which means a court must grant stay relief if the party in interest prevails under any of the subsections. The burden of proof on a motion to lift or modify the automatic stay is a shifting one. Section 362(d)(1) requires an initial showing of cause by the movant. Once satisfied, Section 362(g) then shifts the burden of proof to the debtor for all issues other than the debtor's equity in property. This template is for a debtor objecting to a motion for stay relief under Section 362(d)(1) (i.e., for cause). The template contains an optional section to object to a motion for relief from the stay for lack of adequate protection. For information on the automatic stay and automatic stay relief, see: • Automatic Stay • Automatic Stay Overview Video • Automatic Stay Presentation • Automatic Stay: When the Debtor Is an Individual • Relief from the Automatic Stay Video • Relief from the Automatic Stay for Cause, including Adequate Protection • Automatic Stay Relief for Lack of Equity in Property That Is Unnecessary for an Effective Reorganization • Automatic Stay Relief under Sections 362(d)(3) and (4) For a full listing of key content covering the automatic stay, see Automatic Stay Resource Kit. For list stay motion templates, see Motion to Lift the Automatic Stay Under Section 362(d)(1) for Lack of Adequate Protection, Motion to Lift the Automatic Stay Under Section 362(d)(2) for Lack of Equity in Property That Is Unnecessary for an Effective Reorganization, and Motion to Lift the Automatic Stay to Effectuate a Setoff. For templates for motions to enforce the automatic stay, see Motion to Enforce the Automatic Stay (Bankr. S.D.N.Y.) and Motion to Enforce the Automatic Stay (Bankr. D. Del.). For a full listing of key content on litigating disputes in bankruptcy cases, see Bankruptcy Litigation Resource Kit.