relief from stay

Relief from stay refers to a court's permission to proceed with certain legal actions despite a bankruptcy case being ongoing. When an individual or business files for bankruptcy, an automatic stay temporarily halts all collections and legal actions against them. However, creditors can request relief from this stay to reclaim their rights, such as collecting debts or foreclosing on property. If the court grants this relief, the creditor can resume their actions. This process ensures that bankruptcy proceedings balance the rights of debtors and creditors fairly.