Automatic Stay | Practical Law

Automatic Stay | Practical Law

Automatic Stay

Automatic Stay

Practical Law Glossary Item 4-382-3248 (Approx. 3 pages)

Glossary

Automatic Stay

Also known as a stay. An injunction that immediately stops substantially all collection and enforcement actions by creditors against the debtor in a bankruptcy (§ 362, Bankruptcy Code). It is effective automatically once the order for relief is filed. There are several exceptions to the stay, including certain criminal matters and domestic support obligations, which are not enjoined by the automatic stay as a matter of public policy. Matters arising postpetition are not stayed.
For more information on the automatic stay, see Practice Note, Automatic Stay: Overview.