Automatic Stay: Why Can’t I Just Keep Collecting on Pre-Bankruptcy Claims?
Creditor's Rights Toolkit
When an individual or company files for bankruptcy, a statutory injunction called the "automatic stay" immediately comes into effect. The automatic stay is intended to protect the debtor and the property of its bankruptcy estate from litigation and other creditor action, while the bankruptcy case plays out.
This article briefly explains the "automatic stay" in a bankruptcy case. To access this article and read other insights from our Creditor's Rights Toolkit, please click here.