One critical part of every bankruptcy is something known as the “automatic stay.” This legal order, while fairly obscure, is critical to people declaring bankruptcy, since it gives them the breathing room they need to sort out their finances. But what exactly is the automatic stay, and how can it help people suffering from severe financial distress?
In bankruptcy law, there is something known as the “automatic stay,” which is issued whenever someone declares bankruptcy. This stay is critical to helping people who are declaring bankruptcy from falling into further financial ruin. But what exactly is the automatic stay, and why is it so important in bankruptcy cases?