Automatic Stay
/ˌɔːtəˈmætɪk steɪ/
Definitions
- (n.) A court order halting all collection efforts and legal actions against a debtor following the filing of a bankruptcy petition.
The automatic stay went into effect immediately upon the bankruptcy filing, stopping creditor calls.
Related terms
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Commentary
The automatic stay is a fundamental protection in bankruptcy law preventing creditor harassment during insolvency proceedings.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.