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Application of Debtor in Possession to Employ Attorneys Form

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Application of Debtor in Possession to Employ Attorneys Form

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upon the filing of a bankruptcy a stay arises which usually prohibits all debt collection efforts against the debtor or property of his bankruptcy estate the automatic state does not stop the collection of post-petition debts against the debtor the bankruptcy court does not usually have to sign an order to enact the automatic stay the mere filing of the bankruptcy petition with the clerk is enough to create the automatic stay there are some exceptions to this rule in particular debtors who file successive chapter 13 bankruptcies section 362 of the bankruptcy code governs the automatic stay bankruptcy code section 362a states that the automatic stay stops most legal actions broader could have been brought before the filing of the bankruptcy petition the automatic stay also stops the enforcement of a judgment against the debtor any act to obtain property of the debtor any act to perfect or enforce a lien any right to stop against the debtor and any effort to collect a tax liability again

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