What Is the "Automatic Stay" In Bankruptcy? by Kathleen Munden


The fiing of a bankruptcy petition acts as an immediate stay of any act against the debtor to collect a debt. It is called an “automatic stay” because no action, other than the filing of the petition, is necessary in order for the stay to go into effect. Although there are many exceptions to the automatic stay, creditors generally are forbidden from contacting the debtor to demand payment, filing a lawsuit to obtain a judgment on a debt, filing a lien against the debtor’s property if a judgment has already been obtained, or seizing property of the debtor to satisfy a debt.

Please see full blog post for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Robert Kraft, Kraft & Associates | Attorney Advertising

Written by:


Kraft & Associates on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.