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so when your business enters chapter 11
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the first thing that happens is the
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automatic stay kicks in and what the
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automatic stay is is a wall of
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protection around your business so that
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no one can sue you no one can put a lean
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on any property um if there’s ongoing
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litigation against your company that
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litigation
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freezes so it gives you some breathing
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room as a business and to be able to
0:36
take a step back and look at what the
0:39
strategy that would be best for your
0:41
company going forward it also stops debt
0:45
collection for past debts so there’s a
0:49
freeze on paying back any past debts and
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this is extremely helpful for a company
0:56
especially if you have one very
0:57
aggressive creditor once the auto atic
1:00
stay is in place and that wall of
1:02
protection is around the company the
1:04
company continues to operate as usual
1:07
the company continues to service its
1:09
customers to buy inventory to purchase
1:13
from suppliers its business as usual for
1:17
the most part and so the company
1:20
continues to operate on a current basis
1:22
while enjoying this protection