The Filing of a Petition Triggers an Automatic Stay Once

question 101

True/False

The filing of a petition triggers an automatic stay once the court accepts the request, which provides a period suspending all judgments, collection activities, foreclosures, and repossessions of property by the creditors on any debt or claim that arose before the filing of the bankruptcy petition.

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Definitions:

Adjusting Entry

An entry made in the books of accounts at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Credit Sales

Transactions involving the transfer of goods or services to a customer with the agreement that payment will be made at a later date.

Uncollectible Accounts

Debts owed to a company that are considered unlikely to be paid by the debtor, often resulting in a write-off for the creditor.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.