The filing of a petition triggers an automatic stay once the court accepts the request, which provides a period suspending all judgments, collection activities, foreclosures, and repossessions of property by the creditors on any debt or claim that arose before the filing of the bankruptcy petition.

Question

Quizplus · Accepted Answer

This is correct as per the provisions of the U.S. bankruptcy code, section 362. The automatic stay goes into effect immediately upon the filing of the petition and provides a breathing space for the debtor to reorganize or liquidate their debts.

The Filing of a Petition Triggers an Automatic Stay Once