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.
Read more about Automatic Stay: Provisions
Famous quotes containing the words automatic and/or stay:
“The ruin of the human heart is self-interest, which the American merchant calls self-service. We have become a self- service populace, and all our specious comforts—the automatic elevator, the escalator, the cafeteria—are depriving us of volition and moral and physical energy.”
—Edward Dahlberg (1900–1977)
“We found ourselves always torn between the mothers in our heads and the women we needed to become simply to stay alive.With one foot in the past and another in the future, we hobbled through first love, motherhood, marriage, divorce, careers, menopause, widowhood—never knowing what or who we were supposed to be, staking out new emotional territory at every turn—like pioneers.”
—Erica Jong (20th century)