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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Automatic stays are not available in administrative law cases.
If the delay attending permanent rule challenge proceedings were alone sufficient to justify emergency rulemaking, the legislature's provision for an automatic stay could in every case be neutralized for 90 days by emergency rulemaking.
Among the new rules would be the ability to apply for file for petitions online, a quicker and streamlined election process, as well as the elimination of automatic stays after a regional director issues a decision and direction of election.
Specifically, it proposes to substitute a mandatory preliminary hearing for a voluntary preliminary hearing, create an expedited application for involuntary treatment, enable joint filing of certain applications for involuntary treatment & petitions for involuntary medication, & eliminate automatic stays & automatic stays pending appeal for orders of involuntary medication.
Santos said automatic stays during appeals do not apply to cases like Skakel's and even if they did Bishop has the authority to terminate it.
Prosecutors argued Bishop doesn't have the authority to grant bond because of an automatic stay of his ruling while they appeal.
The nine contributions examine how Lehman Brothers' derivatives portfolio would have worked out under Dodd-Frank, evaluate the costs and benefits of automatic stays for derivatives and repurchase agreements, and analyze the ability of modified bankruptcy laws to preserve a financial firm's going-concern value.
* "A Dialogue on the Costs and Benefits of Automatic Stays for Derivatives and Repurchase Agreements." by Darrell Duffie and David Skeel.
An important policy change leading to the development of the shadow banking system was the exemption from the automatic stay in bankruptcy of Qualified Financial Contracts (QFCs), including derivative and asset repurchase agreements.
The act denies an automatic stay, unless specified conditions are met, to the setoff of an income tax refund for a taxable period that ended before the order for relief against an income tax liability for a taxable period that also ended before the order for relief.
The lower court may set appropriate conditions upon the granting of such a stay.[11] Where the judgment provides other relief in addition to money damages, the automatic stay provision of Rule 9.310(b)(1) does not apply.

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