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Excerpt from Practical Guidance

Expert Analysis

Understanding The Automatic Stay In Bankruptcy

Law360, New York ( June 25, 2014, 5:25 PM EDT) -- To advance the debtor's rehabilitation and enhance a return to the unsecured creditors, the automatic stay provisions of Section 362 of the Bankruptcy Code function as a broad injunction of virtually all types of creditor and other actions against the debtor and the debtor's assets upon the filing of a bankruptcy case. The automatic stay applies to all of the chapters of the Bankruptcy Code. The automatic stay, however, does not protect nondebtor entities such as corporate affiliates, corporate officers, codefendants, guarantors, or general partners of the debtor....

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