The Automatic Stay is Temporary in Bankrupcty

Although the injunction that is created upon the filing of a Bankruptcy Petition, the Automatic Stay is temporary.  This means that it will terminate upon the occurrence of some specified events (See Section 362(c) of the Bankruptcy Code).

When the Bankruptcy case is closed or dismissed and the property is no longer property of the Bankruptcy Estate the Automatic Stay may be terminated (See 11 U.S.C. §362(c)).

Additionally, when a discharge is either granted or denied, the Automatic Stay may be terminated.  It is important to speak with a competent Bankruptcy Attorney in order to maximize the protections that are afforded from the Automatic Stay.

Creditors may file for relief from the Automatic Stay.  If the Bankruptcy Judge approves the motion, the Stay may be annulled, terminated or modified.

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