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Automatic Stays Under The New Bankruptcy Law, Frank R. Kennedy

University of Michigan Journal of Law Reform

In Mueller v. Nugent, decided shortly after the enactment of the Bankruptcy Act of 1898, the United States Supreme Court declared that a petition in bankruptcy is "a caveat to all the world, and in effect an attachment and injunction." This judicial gloss, much quoted and applied since, was an early recognition that a stay of creditors from collecting their claims against the debtor and his property from and after the filing of a petition under the Bankruptcy Act is indispensable to bankruptcy administration. Unless the creditors are stayed, the debtor's estate will be dismembered and the objective of equality …