Automatic Stay at Legal Glossary What is it? An injunction automatically issued by the bankruptcy court when a debtor files for bankruptcy.
Automatic Stay definition:
In bankruptcy law; a stay of collection and other similar debt enforcement proceedings against a bankrupt.
automatic stay
An injunction automatically issued by the bankruptcy court when a debtor files for bankruptcy.
One of the most important rights a debtor in bankruptcy receives is called the automatic stay.
Most commonly, the motion is filed in bankruptcy court where the filing of a bankruptcy petition creates an automatic stay of proceedings in any court where a party is attempting to collect from the debtor in bankruptcy.
 See also: Law, Bankrupt, Bankruptcy, Stay, Creditor
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