What is the Bankruptcy Automatic Stay?

j0280272The Automatic Stay is an Order from the Federal Bankruptcy Court requiring that all debt collection actions against a person or business that has filed for bankruptcy protection be suspended or terminated as of the date of filing.  The court ordered stay is entered automatically in all bankruptcy cases unless some limited statutory exceptions apply.  The automatic stay is a type of injunction or formal command by the court that prohibits any act intended to collect a debt or recover a claim against the debtor that arose before the bankruptcy case was filed. (more…)