During bankruptcy, which actions by the municipality are stopped?

• A. Tax Sale
• B. Transfer delinquencies on municipal held certificates
• C. Foreclose
• D. All of the above

Answer: (D)

An automatic stay in bankruptcy halts actions to collect or enforce debts against the debtor and its property. For a municipality filing Chapter 9, this means tax sales, transfers of delinquencies on municipal-held tax certificates, and foreclosures are stopped while the bankruptcy case is pending. The stay protects assets and gives the municipality time to reorganize its finances under court supervision, preventing piecemeal enforcement outside the bankruptcy process. Some actions can be lifted or modified with court approval, but the default is that those tax-related enforcement steps do not proceed during the case.