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What Is the Purpose of the Automatic Stay in a Bankruptcy

Question 56

Multiple Choice

What is the purpose of the automatic stay in a bankruptcy case?


A) to pay secured creditors without their having to file a proof of claim
B) to ensure that secured creditors are the first to receive payment
C) to prevent a race for the debtor's assets by assuring an orderly distribution in which each party will receive that to which the party is entitled
D) to enable the appointment of a trustee
E) to maximize the assets available for distribution to creditors

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