Automatic Stay

  

This court order is for those annoying bill collectors (creditors) to stop destroying your credit and to stop harassing you, once bankruptcy is filed. If your creditors fail to file a motion to continue collection efforts, then you can sue. If they file a motion, then you (the debtor) can oppose the motion at a hearing in front of a judge.

An automatic stay can prevent you from getting kicked out of your home (foreclosure or eviction), and your lights from getting cut off.

However, this injunction cannot protect you from the IRS (of course). There's some other areas that lie beyond its power as well. Things like child support, criminal proceedings and loans from a pension. If you file bankruptcy, once notified, creditors will automatically stay off your credit.

Related or Semi-related Video

Finance: What is a Compliance Department...0 Views

00:00

Finance allah shmoop what is a compliance department You know

00:07

that karate or tai chee move where the guy has

00:10

your wrist bent all the way back and he's looking

00:13

at you like your dinner Yeah uncle Well in this

00:17

case he's the compliance department and you're you know complying

00:22

well the same holds true in corporate ranks There are

00:25

myriad laws not just in the securities business that executives

00:29

everywhere have to follow Or this happens Well compliance department's

00:35

comprise lawyers who have like a thousand eight hundred ninety

00:38

seven things they check to be sure that your complying

00:41

with regulations so like you're a sales exact you sell

00:46

routers mostly the banks So that's super expensive dinner on

00:50

your expense account What was that for And what exactly

00:55

could you have been doing Business related at magic marty's

00:59

exotic dance club That company rules what happened That was

01:04

on the cover of the wall street journal How do

01:05

you feel then Yeah comply Don't go there next All

01:09

right You're a mutual fund manager You're visiting up big

01:12

telecom company and you're slowly getting rid of the coffee

01:16

pete's house Blend the three cups of it that you

01:19

had two hours earlier Well from the next stall you

01:22

over here The ceo of the telecom company on his

01:26

cellphone among other noises Talking to his banker about the

01:30

twelve dollars a share premium he hopes to get when

01:33

a t and t buys his company Can you quickly

01:37

put in an order and buy shares No And in

01:41

fact you have call your compliance department as soon as

01:44

you're you know done and halt any trading your fund

01:47

was doing in the stock as you now have very

01:50

inside information Alright well complaints applies also to the way

01:55

forms get filled out the way travel is paid for

01:59

Any quote favor unquote over and above About ten bucks

02:04

worth all that's Something that has to be run through

02:06

the compliance department lawyers to be sure that your behavior

02:09

is you know complying And the same happens for complex

02:13

stock trades as well like you work in a hedge

02:15

fund with a risk manager of the compliance department A

02:18

little bit different Kind of complying there you're down eighteen

02:21

percent on a trade you made just two weeks ago

02:24

What do you d'oh Well guess what By charter of

02:27

your hedge fund or the indenture on it or the

02:31

contractual agreement you set up with your investors you have

02:34

to sell Now even though you think it's a screaming

02:38

by here down eighteen percent you clearly didn't know what

02:42

you were doing when you bought the stock at one

02:44

hundred bucks a share And now it's you know eighty

02:47

two And so now you must comply with your bylaws

02:51

and sell and take your losses Because complying is not

02:55

an optional thing that you just picked the follow or

02:57

not When you feel like it You know kind of

02:59

like romantic relationships used to be before tinder was invented

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