The Automatic Stay

In Bankruptcy, the Automatic Stay is an automatic Injunction that halts collection efforts by certain creditors.  The Automatic Stay begins at the moment the Bankruptcy Petition is filed.

Discussion of the Automatic Stay is found in §362 (Section 362) of the United States Bankruptcy Code (11 U.S.C. §362).  The Automatic Stay may have a drastically different impact on different types of creditors.  For example, child support services may still be able to take action to collect from a debtor.

Creditors may petition the Bankruptcy Court by filing and serving a Motion for Relief from the Automatic Stay in an effort to obtain relief from the Automatic Stay.  If a bankruptcy judge grants the Motion, the Automatic Stay may either be removed or modified and the creditor may resume collection efforts against the debtor.

How Long Does the Automatic Stay in Bankruptcy Remain in Effect?

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