automatic stay

(redirected from Automatic Stays)

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 ?
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.
Such option must not run afoul of applicable state law provisions regarding automatic stays, injunctions or void-able preferences.
The National Association of Insurance Commissioners' Insurers' Rehabilitation and Liquidation Model Act provides that an application or petition for a court seizure, commencement of delinquency proceeding, rehabilitation order or liquidation order operates as an automatic stay, prohibiting, among other acts, the transaction of further business by the insurer, waste of the insurer's assets, and other "threatened or contemplated action that might lessen the value of the insurer's assets or prejudice the rights of policyholders, creditors or shareholders.
Because the automatic stay and injunctive powers accrue upon the insurer entering receivership, such option should be exercisable upon a pre-receivership event, such as a significant rating downgrade or suspension, a predetermined inadequacy of the insurer's risk-based capital, a predetermined ratio of the insurer's loss and loss adjustment expense reserves, or other action falling short of receivership.
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 filing of a bankruptcy petition generally creates an automatic stay, which stops the collection efforts of creditors.
Any relief obtained may be reduced as a result of the new limitations on the automatic stay and failure to maintain financial reporting compliance by debtors will lead to dismissal of their case, a loss of debt relief and termination of the automatic stay.
11] Where the judgment provides other relief in addition to money damages, the automatic stay provision of Rule 9.
The filing of a notice of appeal by a public body or public officer acts as an automatic stay pending review (except in criminal cases) when a public body or public officer takes an appeal in an official capacity.

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