In short
Filing a bankruptcy petition automatically stops most collection actions against the debtor and the debtor's property, including lawsuits, foreclosures, repossessions and collection calls.
Key takeaways
- It doesn't stop criminal proceedings or the collection of child support and alimony from property outside the bankruptcy estate.
- A creditor can ask the court for relief from the stay, for example when its collateral isn't adequately protected.
- Actions taken in violation of the stay are generally void.
Where it's tested
REG: Debtor-Creditor & Bankruptcy — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
The filing of a bankruptcy petition triggers an automatic stay, which: