Understand Investments, Financial Products and Make Money!
Monday February 19th 2018

Bankruptcy Automatic Stay Definition

A Bankruptcy automatic stay definition is a brief evaluation it’s put into place automatically once a petition for bankruptcy has been filed by a person or an organization. Once an automatic stay is in place, the order prohibits creditors from taking certain actions against the debtor corresponding to proceeding with lawsuits, attempting to collect debt, initiating foreclosure measures or garnishing wages. While it could possibly seem an automatic stay is arbitrary to creditors, it actually may end up in a more reasonable distribution of bankruptcy assets because an automatic stay prevents a hostile creditor from with the ability to declare to an enormous percentage of the person or entity’s assets before others have an opportunity.

The automatic stay goes into effect if you file bankruptcy. The stay prevents creditors and collectors from looking to accumulate debts from you. They can not call you, send letters, or charge you so long as the automatic stay is in effect.

In bankruptcy, an order against any ongoing collection process by any creditor. It really is, all creditors must stop current attempts to gather debts in the course of the bankruptcy proceedings. Chapter 13 bankruptcy also protects co-debtors who might 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 doesn’t grant automatic stays for third and subsequent filings.

A provision allowed under U.S. Bankruptcy law that stops the commencement or continuation of most judicial, administrative, or other proceedings against the debtor or the debtor’s estate after bankruptcy is filed. The purpose behind an automatic stay is to provide breathing room to a debtor filing a Chapter 11 or Chapter 13 bankruptcy, and to provide a Chapter 7 trustee the time and protection to administer the assets of the estate. The automatic stay also stops Chapter 7 debtors from being pressured by collection agencies. However, anyone who doesn’t need to abide by the automatic stay can file a motion with the bankruptcy court and ask for an exception.

Creditors can, in some instances, file a Motion to boost Stay requesting the bankruptcy court lift the automatic stay for your case and allow them to collection from you. It’s common for mortgage lenders to request the automatic stay to be lifted a good way to complete foreclosure proceedings. The lender’s request probably denied in case you have nonexempt equity at your residence that may be liquidated and used to pay some of your unsecured creditors.

When somebody files a bankruptcy petition, all efforts to collect debt must end unless they fit within one of the vital carefully worded exceptions inside the bankruptcy statute. Here’s how the automatic stay works and how the exceptions work – inside the context of bankruptcy and divorce.

Most people have established the automatic stay to be some of the tempting and liberating aspects of filing bankruptcy, as it is going to basically remove the effort of having to address the late-night phone calls, threatening letters and other harassing efforts of debt collectors.

Nothing Stays the Same… ($9)

Marvin Thomas, CEO of Thomas and Richmond Tecktronics, Inc., is living a life most people dream of living. He’s married to a beautiful woman and they’re the proud parents of a sweet little daughter. Kenny Richmond is the other driving force behind the successful Atlanta Fortune 500 company. But, Marvin’s deep dark secret about the company’s enormous debt and a possible takeover may cause financial ruin for everyone. Marvin has depleted the company’s funds, as well as his own, and a huge decision is weighing heavily on his mind. He must decide whether to sell his company’s shares of which he’s the majority shareholder.

Overcome with despair, Marvin ventures to a local bar to drown his sorrows. A chocolate, afro wearing, long-legged woman enters and sits next to Marvin. Sensing Marvin’s troubled spirit, she moves in for the kill and lures him back to her apartment. When Marvin wakes up from his alcoholic binge, he realizes he’s in deep trouble; trouble that may cause him lots of money and his marriage.

NOTHING STAYS THE SAME is the explosive sequel to Ex-Terminator: Life After Marriage. Dramatically suspenseful, NOTHING STAYS THE SAME is an entertaining novel. The characters have their emotional moments and the desperation felt by Marvin to save his company is relevant to the times of today.

Reviewed by Sharon Lewis

of The RAWSISTAZ ™ Reviewers

Strategic Bankruptcy: How Corporations and Creditors Use Chapter 11 to… ($3)

I’m wrinting this reveiw because the anonymous one is far too hard with this book. In fact, it’s a good inroduction about the problems about Chapter 11 and the perverses uses sometimes made of it. Clearly, it’s not a “scientific”, neutral book, but a political one… Readers must be aware, and must read it with a critical point of view.

Leave a Comment