After the filing of a bankruptcy petition, the debtor needs protection from the collection efforts of its creditors. Therefore, the bankruptcy law provides that the filing of either a voluntary or involuntary petition operates as an automatic stay which prevents creditors from taking action against the debtor. This is similar to an injunction against the creditors of the debtor. The automatic stay ends when the bankruptcy case is closed or dismissed or when the debtor is granted a discharge. Anyone who willfully violates the stay in the case of an individual debtor can be liable for actual damages caused by the violation and sometimes liable for punitive damages.
Title: Delaware Motion to Extend Automatic Stay and Notice of Motion: A Comprehensive Overview Introduction: In the state of Delaware, individuals or entities who have filed for bankruptcy may need to file a Motion to Extend Automatic Stay and a Notice of Motion to request a prolongation of the automatic stay period. This detailed description aims to provide comprehensive information about the Delaware Motion to Extend Automatic Stay and Notice of Motion, including their purpose, process, and potential types. 1. Purpose of the Delaware Motion to Extend Automatic Stay:Title: Delaware Motion to Extend Automatic Stay and Notice of Motion: A Comprehensive Overview Introduction: In the state of Delaware, individuals or entities who have filed for bankruptcy may need to file a Motion to Extend Automatic Stay and a Notice of Motion to request a prolongation of the automatic stay period. This detailed description aims to provide comprehensive information about the Delaware Motion to Extend Automatic Stay and Notice of Motion, including their purpose, process, and potential types. 1. Purpose of the Delaware Motion to Extend Automatic Stay:
