Andrew Vavricka

Document Type

Research Memorandum

Publication Date




The filing of a bankruptcy petition under title 11 of the United States Code (the “Bankruptcy Code”) results in an automatic stay that bars collection efforts against a debtor’s property. Consequently, a creditor will generally be prevented from foreclosing on property in which a debtor has an interest, including a possessory interest. Section 362(d), however, provides that the automatic stay may be lifted or modified under four alternatives. This article will discuss the implication of the automatic stay on a New York foreclosure action and bankruptcy courts’ rationale for lifting the automatic stay in the foreclosure context.

Part I of the memo explains the necessary parties in a foreclosure action. Part II briefly describes the implication of a bankruptcy filing on a foreclosure. Lastly, Part III summarizes the situations in which a court may lift the automatic stay to allow a creditor to proceed with a foreclosure action.


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