What is unique about the Automatic Stay?

October 12, 2011

The Automatic Stay— also known as the Stay– a feature of the Bankruptcy code whether you file a Chapter 7 or a Chapter 13 is really something.  The Stay goes into affect as soon as your bankruptcy is filed. It protects you – with a few exceptions– from any further actions by your creditors while you are in bankruptcy.

After you file, your creditors are required to go through the bankruptcy court to proceed with any collection activity. In order to do so the creditor must present to the court — and the court must be willing to accept — a very good reason for the court lifting the automatic stay in the creditor’s particular situation.

Assuming the Automatic Stay is not lifted, the Stay will last under a Chapter 13 until the court confirms your plan or if your case is dismissed.


The law office of Steven J. Hunter is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code

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What is bankruptcy?

Bankruptcy is a right provided by law to people who are deeply in debt and in need of a fresh start. Bankruptcy will discharge many of your debts and you will not have to pay them, except that mortgages and other liens may still need to be paid if you want to keep the secured property.

See Beginner's Bankruptcy above