The Automatic Stay in bankruptcy is one of the fundamental debtor protections provided by the Bankruptcy Code. If creditors have been harassing you, this is the provision in the bankruptcy code that will give you immediate relief. Whether you are filing Chapter 13 or Chapter 7 bankruptcy, the Automatic Stay goes into effect immediately and automatically when you file for bankruptcy protection. The automatic stay is a legal injunction that prohibits most creditors to stop taking legal action against you, and from even contacting you.
The Automatic Stay is a great tool for debtors because it serves to stop most contact and continuing collection activity from creditors on debts that are owed. If you want to get creditors off your back, filing for bankruptcy and enacting the automatic stay is an effective means of doing so. Once the automatic stay goes into effect, your creditors are not even allowed to call you or write you. Any communication they wish to have with you will have to go through your bankruptcy attorney.
In most situations, the automatic stay STOP:
There are certain exceptions in which the Automatic Stay in bankruptcy cannot help you. In most cases, the automatic stay remains in effect for the duration of the bankruptcy case. However, there are situations in which the automatic stay is limited or not enforced at all:
The Automatic Stay in bankruptcy is neither absolute nor permanent. For most chapter 7 and 13 cases however, it stays in effect until the debtor gets a discharge from his or her debt, the property in question is no longer a part of the estate, or a judge lifts the stay at the request of a creditor, who must file a Motion for Relief from the Automatic Stay.