12 Questions
When does the automatic stay become effective?
Upon the filing of a bankruptcy action
What is covered by the automatic stay?
362(a) – Virtually everything
What is excepted from the automatic stay?
Certain actions specified under 362(b)
When does the automatic stay end?
When the case is closed or when the property is 'abandoned from the estate'
What are the three actions that the bankruptcy court can take regarding the automatic stay?
Continue the stay, order the end of the stay, place conditions on the continuation of the stay
What is the consequence of violating the automatic stay according to 362(k)?
The debtor can be required to pay the creditor damages
What is the effect of the automatic stay on pending litigation?
Everything stops, there is no more collection activity
Does the automatic stay prevent enforcement of a judgment entered in a state court action?
No, it does not prevent enforcement of the judgment
In Citizens Bank v. Strumpf, what was the bank's right regarding the debtor's frozen assets?
The bank was within its rights to freeze the debtor’s assets
What action should individuals take if they have money in a bank to which they owe money before filing for bankruptcy?
Take the money out
In which state can individuals protect up to $5,000 at a time in a bank they owe money to before filing for bankruptcy?
Wisconsin
What is the consequence of a creditor's setoff of any debt owing to the debtor against any claim against the debtor after the commencement of the bankruptcy case?
It may violate the automatic stay
Test your understanding of the automatic stay in bankruptcy proceedings with this quiz. Explore the scope of the stay and its impact on creditors' actions, and enhance your knowledge of the legal protections afforded to debtors.
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