The Power of the Automatic Stay

Firethorne Country Club filed for Chapter 11 in March. In a prime example of the power of the automatic stay, the club’s owners bought some time to reorganize before a creditor could seize operations. A 2 p.m. hearing in federal court on was canceled after Firethorne’s owner’s filed the bankruptcy petition just after 1 p.m.

How the automatic stay works

The automatic stay applies to most creditors and is a statutory injunction that stops harassing telephone calls, lawsuits, foreclosures, garnishments, repossessions and all collection activities, the moment your bankruptcy petition is filed with the bankruptcy court. It places you and your property under the protection of the bankruptcy court and allows time and space for an orderly administration of the bankruptcy estate by a bankruptcy trustee.

The injunction takes effect against your creditors without you or your attorney appearing in court, filing a motion or waiting for an order from the bankruptcy court.
Read more: Firethorne Country Club files bankruptcy – Charlotte Business Journal