November 26th, 2007 by Questions
what is a notice of stay of proceedings
November 27, 2007 at 9:57 am, A licensed trustee said:
When someone files for bankruptcy (or a proposal) the law automatically creates something called a “Stay of Proceedings”. This stay stops any legal action that has been commenced against a bankrupt and prohibits any new actions from starting without the express permission of the bankruptcy Court.
The “notice of stay of proceedings” is simply the legal document that is sent to creditors/employers/the court informing them of the stay and the requirement to cease what they are doing.
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