What Is An Order For Relief In Bankruptcy

An order for relief in bankruptcy refers to a court-issued order that initiates the bankruptcy process for an individual or entity. It is typically granted by a bankruptcy court in response to a bankruptcy petition filed by the debtor or their creditors. When a debtor files for bankruptcy under either Chapter 7 or Chapter 11 of the United States Bankruptcy Code, they submit a petition to the bankruptcy court. Once filed the Court it issues an order for relief. The order for relief has several significant effects: Automatic stay: Upon the issuance of an order for relief, an automatic stay goes into effect....