If I have a letter of credit and the customer goes bankrupt am I safe, or is the L/C covered by the automatic stay?

Answer: : The L/C is a contract between you and the bank - usually intended to protect you in the event of customer default or bankruptcy. Thus, voiding the L/C because of a bankruptcy would be counter-intuitive. Congratulations on demanding that the customer get its bank to issue a L/C with your company as the beneficiary.