Asked by Nefetiti Easter on Jul 06, 2024
Verified
Once a bankruptcy petition is properly filed, creditors can commence or continue most legal actions against the debtor to recover claims.
Bankruptcy Petition
A legal document filed by an individual or entity declaring the inability to pay outstanding debts, seeking relief under bankruptcy laws.
Creditors
Individuals or entities to whom money is owed by debtors.
Legal Actions
Formal steps taken within the judicial system, such as filing lawsuits or other court proceedings, to enforce or protect legal rights.
- Comprehend the process and implications of automatic stay on creditors' actions following a bankruptcy filing.
Verified Answer
MC
Madison CollierJul 07, 2024
Final Answer :
False
Explanation :
Once a bankruptcy petition is properly filed, an automatic stay is put into place, which prevents most creditors from commencing or continuing legal actions against the debtor to recover claims.
Learning Objectives
- Comprehend the process and implications of automatic stay on creditors' actions following a bankruptcy filing.
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