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 ?
Accordingly, the lessor has a variety of remedies it can pursue: seeking relief from the automatic stay, filing a motion to compel payment, filing an administrative expense claim and filing a motion to require the debtor-lessee to assume or reject the lease.
The action was filed under the provisions of the Hatch-Waxman Act in response to Adamis' Paragraph IV certification regarding the Kaleo patents as part of the company's NDA process, and results in an automatic stay of any final approval by the FDA of Adamis' NDA.
After the Bank asked Bankruptcy Judge Cox to lift the automatic stay under 11 U.S.C.
The automatic stay, which gives debtors a breathing spell from creditors, is one of the most "fundamental debtor protections" in bankruptcy.
A bank could not seek in rem relief exempting a property from automatic stay after an alleged serial filer of Chapter 13 bankruptcies voluntarily dismissed his latest petition, a U.S.
Paul Rea's Automatic Stay went close on his first visit to the track last month and the experience gained from that entitles him to a strong vote in the 7.07 over 238m, Open Check nap Adamant Adele 6.49 Harlow
Although the automatic stay provisions of the Code would not prevent a payment default, the holder of a statutory lien is entitled to recover the value of the lien in the bankruptcy proceeding.
to be directly supervised by FBR, 10% payment on automatic stay at Commissioner's Appeal and making ADRC decisions binding,' he added.
'We provided maximum facilitation to the taxpayers and businesses by introducing one audit in three years with salaried class completely out of audit, simplified return form for salaried class, 40B to be directly supervised by FBR, 10pc payment on automatic stay at Commissioner's Appeal and making ADRC decisions binding,' it added.
The major advantage of filing for bankruptcy is the automatic stay or halt against creditor action to foreclose or collect debts during the bankruptcy proceeding.
Once signed into law it will also lift all existing court orders against projects, as well as revoke the provision that grants an automatic stay order once an appeal has been lodged at the NET.

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