After the filing of the bankruptcy petition, the debtor needs protection from the collection efforts of its creditors. Therefore, the bankruptcy law provides that the filing of either a voluntary or involuntary petition operates as an automatic stay which prevents creditors from taking action against the debtor. This is similar to an injunction against the creditors of the debtor. The automatic stay ends when the bankruptcy case is closed or dismissed or when the debtor is granted a discharge.
The Wisconsin Motion in Bankruptcy Court by Mortgagee to Vacate Stay to Permit Foreclosure of Mortgage on Debtor's Real Property is a legal procedure filed by a mortgagee seeking approval from the court to proceed with the foreclosure of a mortgage on a debtor's real property, despite the automatic stay imposed by the bankruptcy filing. Keywords: Wisconsin, Motion, Bankruptcy Court, Mortgagee, Vacate Stay, Permit Foreclosure, Mortgage, Debtor, Real Property. Types of Wisconsin Motions in Bankruptcy Court by Mortgagee to Vacate Stay to Permit Foreclosure of Mortgage on Debtor's Real Property: 1. Emergency Motion to Vacate Stay: This motion is typically filed when the mortgagee believes that immediate action is necessary to protect their interests, and they request the court to lift the stay without delay to proceed with the foreclosure process. 2. Motion to Vacate Stay for Lack of Adequate Protection: This motion is filed when the mortgagee believes that the debtor's property is declining in value or deteriorating, and requests the court to lift the stay to allow foreclosure to prevent further financial loss. 3. Motion to Vacate Stay for Cause: This motion is filed when the mortgagee can demonstrate that continuing the stay would cause undue hardship or prejudice to their interests. The mortgagee must present valid reasons, such as nonpayment of mortgage payments, lack of insurance coverage, or potential waste or mismanagement of the property. 4. Motion to Vacate Stay for Bad Faith: This motion is filed when the mortgagee believes that the debtor filed for bankruptcy in bad faith, solely for the purpose of delaying or frustrating the foreclosure process. The mortgagee must provide evidence to support their claim of bad faith. 5. Motion to Vacate Stay for Lack of Equity: This motion is filed when the mortgagee can prove that there is no equity in the debtor's real property and that foreclosure is necessary to protect their interests. Lack of equity may be demonstrated through an appraisal, market analysis, or other relevant evidence. 6. Motion to Vacate Stay for Substantial Change in Circumstances: This motion is filed when the mortgagee can demonstrate a significant change in circumstances that warrants lifting the stay. Examples could include the debtor's failure to perform agreed-upon obligations, substantial deterioration of the property, or refusal to cooperate in the foreclosure process. It is important to note that the specific requirements and procedures for each type of motion may vary, and legal advice should be sought to ensure compliance with Wisconsin bankruptcy laws and court rules.
