Bankruptcy, Restructuring and Creditors’ Rights
To Stay Clear of Stay Violations, Action May be Required
The automatic stay, imposed (automatically, of course) by the filing of a voluntary bankruptcy petition, is the most fundamental of protections offered by the Bankruptcy Code. The stay, governed by 11 U.S.C. § 362 , is designed to provide debtors with a “breathing spell” from creditors and the opportunity to liquidate or reorganize under the supervision of the bankruptcy court. It bars not only the commencement of any action against the bankruptcy debtor to collect debts, but also the…
July 2, 2015