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Automatic Stays Under The New Bankruptcy Law, Frank R. Kennedy
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 …
The Automatic Stay In Bankruptcy, Frank R. Kennedy
The Automatic Stay In Bankruptcy, Frank R. Kennedy
University of Michigan Journal of Law Reform
The filing of a petition under the Bankruptcy Act constitutes an automatic stay of all litigation against the debtor and most acts and actions against the debtor's property. The stay is one of the most notable features of the Rules of Bankruptcy Procedure promulgated by the Supreme Court. The constitutional and statutory basis for the automatic stay has been challenged, and the propriety and the scope of the stay have been contested and ruled on, in many reported opinions. The need and justification for an automatic stay in bankruptcy and debtor relief cases have been widely acknowledged, and an automatic …