In United States bankruptcy law, an automatic stay is an automatic injunction that halts actions by creditors, with certain exceptions, to collect debts from a debtor who has declared bankruptcy. Under section 362 of the United States Bankruptcy Code, 11 U.S.C. ยง 362, the stay begins at the moment the bankruptcy petition is filed. Secured creditors may, however, petition the bankruptcy court for relief from the automatic stay upon a showing of cause.
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Famous quotes containing the words automatic and/or stay:
“What we learn for the sake of knowing, we hold; what we learn for the sake of accomplishing some ulterior end, we forget as soon as that end has been gained. This, too, is automatic action in the constitution of the mind itself, and it is fortunate and merciful that it is so, for otherwise our minds would be soon only rubbish-rooms.”
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—Henry David Thoreau (1817–1862)