Who must authorize the automatic stay?

Who must authorize the automatic stay?

• A. Petitioning attorney
• B. Bankruptcy judge
• C. Debtor
• D. Creditor committee

Answer: (A)

The stay is activated by filing, not by any separate approval. When a bankruptcy petition is filed with the court, the automatic stay goes into effect by operation of law, and no additional authorization from a judge or a creditors’ group is required. The act of filing is done by the debtor (voluntary case) or by petitioning creditors in an involuntary case, typically through the debtor’s or petitioning attorney. So, in practical terms, the attorney who files the petition effectively initiates the stay by submitting it to the court. The judge can later decide on requests to lift or modify the stay, but the initial stay itself is automatic upon filing, and the creditor committee does not grant it.

The stay is activated by filing, not by any separate approval. When a bankruptcy petition is filed with the court, the automatic stay goes into effect by operation of law, and no additional authorization from a judge or a creditors’ group is required. The act of filing is done by the debtor (voluntary case) or by petitioning creditors in an involuntary case, typically through the debtor’s or petitioning attorney. So, in practical terms, the attorney who files the petition effectively initiates the stay by submitting it to the court. The judge can later decide on requests to lift or modify the stay, but the initial stay itself is automatic upon filing, and the creditor committee does not grant it.