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Simple English definitions for legal terms
automatic suspension
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A quick definition of automatic suspension:
Automatic Suspension: When someone files for bankruptcy, an automatic suspension or stay is put in place. This means that all attempts to collect money from the person who filed for bankruptcy must stop until the court decides how to handle the debts. The purpose of the automatic suspension is to give the court time to figure out how to fairly distribute the person's assets to their creditors without any interference from them.
A more thorough explanation:
Definition: Automatic suspension is a legal term that refers to the automatic stay under STAY. It is a postponement or halting of a proceeding, judgment, or the like. An order to suspend all or part of a judicial proceeding or a judgment resulting from that proceeding.
Example: In bankruptcy cases, an automatic stay is put in place upon the filing of the bankruptcy petition. This means that all actions against the debtor should be halted pending the determination of creditors' rights and the orderly administration of the debtor's assets free from creditor interference.
Explanation: The example illustrates how an automatic suspension works in bankruptcy cases. It is a legal mechanism that protects the debtor from any collection efforts by creditors while the bankruptcy case is ongoing. This allows for a fair and orderly process of determining the debtor's assets and liabilities, and how they will be distributed among the creditors.
Related Term: Stay-Away Order is another legal term that refers to an order forbidding the defendant to contact the victim in a domestic-violence case or prohibiting a youthful offender from frequenting the scene of the offense or from being in the company of certain persons in a juvenile-delinquency case.