Section 5.3 Duration

LibraryBankruptcy Practice (2007 Ed. + 2015 Cum Supp)

C. (§5.3) Duration

As its name suggests, the automatic stay becomes effective automatically upon the filing of a bankruptcy petition, voluntary or involuntary, under any chapter of the Bankruptcy Code. It is self-executing and does not require actual notice to be effective. It has been said that the filing of a bankruptcy petition constitutes notice to the world. In re Carter, 16 B.R. 481 (W.D. Mo. 1981) (Sachs, D.J.), aff’d, 691 F.2d 390 (8th Cir. 1982). As will be seen, the automatic stay is effective only prospectively. It does not undo prepetition actions, although it prohibits further actions from being taken.

The automatic stay is not permanent. Situations in which the stay terminates automatically are set out in 11 U.S.C. § 362(c), whereas relief...

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