the bankruptcy alphabet brought to you by the letter a

Bankruptcy Alphabet-A is for Automatic Stay

New York Bankruptcy Attorney, Jay S. Fleischman, has began a series of blog entries entitled “From A to Z in the Bankruptcy Alphabet” and has thrown down the gauntlet for other bankruptcy attorneys to follow suit.

This series of blog posts will briefly focus on a bankruptcy term, give a short definition, and, if applicable, give an example of how the term may work.

So we start with A-

Photo by Poppy Thomas-Hill

A is for “Automatic Stay”. The Automatic Stay is an important aspect of bankruptcy law because it prohibits various activities against the debtor and the property of the bankruptcy estate. A “stay” is also called an injunction, which is a court order preventing a party to do a certain action. What makes the automatic stay so awesome is that it is automatically imposed upon the filing of the bankruptcy petition. No court order is necessary, because it goes into effect the second your attorney presses the file button.

11 U.S.C. §362 describes what the automatic stay is, what activities are prohibited and which are exempt. when the stay terminates, what happens by violating the automatic stay.

The following is a brief list of those activities that are prohibited:

  • Enforcement of pre-petition Judgments-§362(a)(2)
  • Exercising control over property of the estate-§362(a)(3)
  • Creating or Enforcing a Lien on property of the estate-§362(a)(4),(5)
  • Collection of pre-petition debt-§362(a)(6)
  • Setoff of Debt-§362(a)(7)

The following are activities that are not prohibited:

  • Criminal actions-§362(b)(1)
  • Cases regarding paternity and child support-§362(b)(2)
  • Tax Assessments-§362(b)(9)
  • Expired Leases on Non-Residential Property-§362(b)(10)
  • Retirement Account Loan Repayment-§362(b)(19)
  • A setoff of an income tax refund by governmental unit-§362(26)

The automatic stay terminates when the following happens:

The Bankruptcy Code provides Debtors with a powerful tool if parties violate the automatic stay; these include an award of actual damages, attorney fees and, sometimes in appropriate circumstances, punitive damages. §362(k).

As you can see, the automatic stay is a powerful instrument in protecting a debtor’s interests.

Ryan D. Caldwell is a Omaha and Lincoln, Nebraska Bankruptcy Attorney and strives to provide clients with compassionate legal care in areas bankruptcyfamily lawcreditor’s rightsestate planning, and probate.

Other Bankruptcy Lawyers talking about the Letter A are as follows:

Trackbacks

  1. […] Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell […]

  2. […] Newnan, Georgia Bankruptcy Lawyer, Rick Palmer Attorney – Law Offices of Daniel J. Winter Automatic Stay – Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell Automatic Stay – Connecticut Bankruptcy Lawyer William E. Carter Automobiles – Colorado […]

  3. […] debtor voluntarily dismissed the case after a creditor sought relief from the automatic stay in order to pursue the debtor’s property upon which it holds a […]

  4. […] Automatic Stay by Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell […]

  5. […] judgment. When you file for bankruptcy the bankruptcy court will immediately enter an order for an Automatic Stay. This stay order stops any collection efforts from proceeding against you, including any pending […]

  6. […] Automatic Stay – Nebraska Bankruptcy Attorney, Ryan D. Caldwell            […]

  7. […] or Assumption or Assumptions. A is for Attorney. A is for Automatic Stay or Automatic Stay or Automatic Stay or Automatic Stay. A is for Automobiles. A is for Avoidance or Avoidance of Preferential Transfers. […]

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  9. […] Automatic Stay- Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell […]

  10. […] Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell says A is for Automatic Stay […]

  11. I is for Injunction…

    I’m continually expanding my bankruptcy law studies and now reading, Bankruptcy and Debtor/Creditor, Fifth Edition by Brian A. Blum. In this book, Blum discusses the two most important forms of injunction in a bankruptcy case as arising as a matter……

  12. […] first is the Automatic Stay under 11 U.S.C. 362, which serves as an automatic injunction to stay any and all collections […]

  13. […] first is the Automatic Stay under 11 U.S.C. 362, which serves as an automatic injunction to stay any and all collections […]

  14. […] Automatic Stay – Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell – […]

  15. […] Assets Assets Assume Assumption Assumption Assumptions Attorney Automatic Stay Automatic Stay Automatic Stay Automobiles Avoidance […]

  16. […] visit the following links: A = Abandonment- Jay S. Fleischman, New York City Bankruptcy Attorney A = Automatic Stay- Ryan D. Caldwell, Omaha & Lincoln, NE Bankruptcy Attorney A = Assume- Cathy Moran, Northern CA Bankruptcy Attorney A = Adversary Proceeding- Kimberly […]

  17. […] Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell […]

  18. A is for Application…

    Many Consumer Debtors have a difficult time understanding how their attorney gets paid in a Chapter 13 case. So, today I want to discuss what is called an Application for Compensation. When you first meet with your attorney to retain……

  19. […] IRS must respect the automatic stay. When a bankruptcy case is filed, all creditors, including the feds, must stop all efforts to […]

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