Stipulation To Modify Stay {LBF-8-B}

Mont. LBF 8-B - STIPULATION TO MODIFY STAY. This form is used in the United States Bankruptcy Court for the District of Montana when the debtor, creditor, and trustee mutually agree to alter the automatic stay imposed by 11 U.S.C. § 362. The automatic stay prevents creditors from taking collection action against the debtor or the debtor’s property after a bankruptcy petition is filed. Through this stipulation, the parties request court approval to modify that stay—typically to allow the secured creditor to take action such as foreclosing on or repossessing certain collateral, such as a vehicle or real property. The stipulation outlines the amount owed, a breakdown of the debt, a description of the secured property, and the agreed-upon terms under which the creditor may proceed. If granted, the creditor must follow non-bankruptcy law in disposing of the collateral and is required to report any proceeds and return any surplus funds to the trustee or the bankruptcy estate. [11 U.S.C. § 362; Mont. LBR 4001-1(d)]. www.FormsWorkflow.com