Simple Automatic Stay question

[LimpDisc]

I probably should know the answer to the question.

When does the automatic stay get lifted for CH7 bankruptcy?

Discharge or closing?

[justbroke]

This is a trick question.

The automatic stay, imposed in 11 USC 362, doesn't end until the subject property is no longer property of the estate. There are multiple ways that the property is no longer estate property.

• Trustee explicitly abandons the property
• The discharge order abandons the property
• A party in interests motions for and is granted relief from the automatic stay
• Conditioned by other parts of the Code. For example, 11 USC 366 deals with utility companies and their right to refuse service after 20 days of filing, unless adequate protection is provided.
• The case is dismissed

So, the stay can be removed for several reasons. Generally, the discharge grants a release because the Trustee's final report specifically indicates that the Trustee seeks to abandon property of the estate.

However, property that is subject to ongoing litigation (hearing) will have the stay conditioned and extended until a determination is made. Additionally, any property that is not exempt will remain property of the estate until the case closes, the case is dismissed, or the Trustee explicitly abandons the property, whichever comes first.

But generally speaking, the stay goes after discharge, dismissal or granted relief.