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Automatic Stay
Explanation:
Temporary measure enacted when you file a petition for bankruptcy. This injunction prohibits creditors from taking certain actions against you, such as proceeding with lawsuits, attempting to collect debt, initiating foreclosure measures or garnishing wages. This prevents an aggressive creditor from laying claim to a large percentage of your assets before others have a chance.
Our Thoughts:
Creditors can file for "Relief from Stay", which, if approved by the bankruptcy court, allows them to repossess or foreclose upon the property, or allows them to pursue the debtor's insurance coverage.