Automatic stay

Automatic Stay
Automatic Stay definition :
The restricting of liability holders from collection efforts related to collateral seizure. Automatically imposed when a firm files for bankruptcy under Chapter 11.
FTSE 100, S&P 500 All In One ...

Automatic stay
The restricting of liability holders from collection efforts of collateral seizure, which is
automatically imposed when a firm files for bankruptcy under Chapter 11.
Related Terms: ...

AUTOMATIC STAY - the suspension of actions, such as debt collection or foreclosure, against the company...
AUTOMATIC TRANSFER - An arrangement that moves money at certain specified times, often monthly, from an...

Automatic Stay
The automatic stay is an injunction that automatically becomes effective, after any person or organization files for bankruptcy.

automatic stay
An injunction that automatically becomes effective upon the filing of any bankruptcy proceeding. The stay precludes creditors from taking action against the debtor or the debtor's property.

How Long Does Bankruptcy's Automatic Stay Last?
by Reed Allmand
Generally speaking the automatic stay will protect a debtor from creditor asset seizures from the moment they file bankruptcy until their case is dismissed, discharged or closed.

When a petition is filed, an automatic stay prohibits creditors from making further collection efforts until a debt has been discharged, a repayment plan is accepted by creditors, or a petition is dismissed by the bankruptcy court.

We assessed the tax and sent the levy notice when you were in bankruptcy, and subject to the automatic stay during bankruptcy,
We made a procedural error in an assessment, ...

At this point, a trustee will be appointed to oversee the bankruptcy process, and an "automatic stay" will be imposed by federal law -- precluding your creditors from taking any further collection action against you.

See also: Chapter 11, Expense, Banks, Bills, Saving