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:
“Predictions of the future are never anything but projections of present automatic processes and procedures, that is, of occurrences that are likely to come to pass if men do not act and if nothing unexpected happens; every action, for better or worse, and every accident necessarily destroys the whole pattern in whose frame the prediction moves and where it finds its evidence.”
—Hannah Arendt (1906–1975)
“The free man is a warrior.—How is freedom measured among individuals, among peoples? According to the resistance that must be overcome, according to the trouble it takes to stay on top. The highest type of free man must be sought where the highest resistance is constantly overcome: five steps away from tyranny, close to the threshold of the danger of servitude.”
—Friedrich Nietzsche (1844–1900)