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.