What is Automatic Stay?

Legal Definition
In United States bankruptcy law, an automatic stay is an automatic injunction that halts actions by creditors, with certain exceptions, to collect debts from a debtor who has declared bankruptcy. Under section 362 of the United States Bankruptcy Code, the stay begins at the moment the bankruptcy petition is filed. Secured creditors may, however, petition the bankruptcy court for relief from the automatic stay upon a showing of cause.
-- Wikipedia
Legal Definition
A legal provision afforded to a debtor in bankruptcy that prohibits filing of lawsuits against the company and limits the ability of creditors to dispose of collateral held as security. While creditors in general cannot sell any of the debtor