Automatic Stay

Summary

This practice note discusses the automatic stay under Section 362 of the Bankruptcy Code. To advance the debtor's rehabilitation and enhance a return to the unsecured creditors, the automatic stay provisions of Section 362 of the Bankruptcy Code function as a broad injunction of virtually all types of creditor and other actions against the debtor and the debtor's assets upon the filing of a bankruptcy case. The automatic stay applies to all of the chapters of the Bankruptcy Code. The automatic stay, however, does not protect non-debtor entities such as corporate affiliates, corporate officers, codefendants, guarantors, or general partners of the debtor.