automatic stay

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Automatic stay

The restricting of liability holders from collection efforts related to collateral seizure. Automatically imposed when a firm files for bankruptcy under Chapter 11.

Automatic Stay

In bankruptcy, an injunction against any ongoing collection process by any creditor. That is, all creditors must stop current attempts to collect debts during the bankruptcy proceedings. Chapter 13 bankruptcy also protects co-debtors who may not have filed bankruptcy. The automatic stay prevents creditors from filing lawsuits, making collection calls, or repossessing or foreclosing on property until the debts are discharged (or not) or the bankruptcy judge lifts the stay. American bankruptcy law limits the automatic stay for second-time filers to 30 days, and does not grant automatic stays for third and subsequent filings.

automatic stay

A bankruptcy provision that stops all creditor actions,including foreclosures,immediately upon a debtor's filing for bankruptcy protection. There is then a breathing period during which no creditor action may take place.Afterward,a creditor may ask the court for permission to proceed,called a request to lift the automatic stay.To be successful,it must prove that neither the debtor, nor any other creditors,will be prejudiced if foreclosure or repossession is allowed to continue.

References in periodicals archive ?
The Federal tax lien attaches to a taxpayer's personal property even though the property is exempt from levy due to the automatic stay.
A motion by Goldome to vacate the automatic stay in bankruptcy court will be heard soon and would have the effect of reinstating the foreclosure action, Torres said.
Under federal regulations, this filing triggered an automatic stay of deportation.
Black has further asserted that an automatic stay applies.
Furthermore, the rights and revenues would not be subject to the automatic stay provisions of the bankruptcy code.
Specifically, the Code's automatic stay provision allows renters facing eviction to live rent-free in their apartments until the stay is lifted by the courts, which can often take six months or more.
In that event, the policy proceeds of the Travelers SelectOne(SM) Broad Form would not be deemed assets of the fund and subject to the SEC's control or automatic stay under bankruptcy law because the policy limit is dedicated solely to the mutual fund directors.
The automatic stay loophole has even spurred marketing campaigns by attor- neys and non-attorneys promoting it as a way to live "rent-free" for months at a time.
Any such relief could apply to transfers or acquisitions since the date of Foamex's chapter 11 filing (September 19, 2005) to the date of the granting of the motion being filed today as such transfers or acquisitions could have violated the automatic stay under the Bankruptcy Code.
What is the effect of the automatic stay on real estate tax liens?
11 /PRNewswire/ -- YUKOS Oil Company today sued Gazprom, Gazpromneft, Baikal Finance Group and Rosneft for in excess of $20 billion for their role in expropriating Yuganskneftgaz in December 2004, in violation of the automatic stay in the YUKOS Chapter 11 bankruptcy case.
The Supreme Court has elected to hear the case, and as part of its decision, the high court reinstated an automatic stay, forcing the exchange of simulcasts to end and Calder to discontinue off-season simulcast operations while the case is adjudicated.

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