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What is the meaning of automatic stay?

Automatic Stay -- Immediately after a bankruptcy case is filed, an injunction (called the Automatic Stay) is generally imposed against certain creditors who want to start or continue taking action against a debtor or the debtors property.

What happens when a lawsuit is in automatic stay?

The police power exception to the automatic stay is designed to allow governmental entities to perform certain functions. 11 U.S.C. 362(b)(4) provides that certain prongs of the automatic stay do not apply to an action or proceeding by a governmental unit to enforce their police and regulatory power.

What are the violations of the automatic stay?

From a practical point of view, there are two types of violations of the automatic stay that a filer deals with: (1) calls and/or debt collection letters, and (2) continuation of legal action, such as a pending lawsuit, garnishment, foreclosure or repossession.

How long does the automatic stay last?

How Long Does an Automatic Stay Last? The automatic stay remains in effect until your case is closed. But, of course, it isnt always that simple. For Chapter 7, its often the case that a stay will last the 3-5 months the court case is open.

How long does an automatic stay last?

Specifically, upon a debtors bankruptcy filing, the automatic stay a statutory injunction imposed by the Bankruptcy Code prohibits non-debtor parties from taking any action to collect a pre-bankruptcy debt or to exercise control over the debtors property, including the exercise of remedies under contracts with

What does it mean to receive an automatic stay?

Automatic Stay -- Immediately after a bankruptcy case is filed, an injunction (called the Automatic Stay) is generally imposed against certain creditors who want to start or continue taking action against a debtor or the debtors property. Bankruptcy Code Section 362 discusses the Automatic Stay.

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