When you file for Chapter 7 or Chapter 13 bankruptcy, the automatic stay immediately goes into effect. The automatic stay prohibits most creditors from continuing with collection activities, which can provide welcome relief to debtors as well the opportunity to regroup during bankruptcy. There are some exceptions to the automatic stay, so it's important to learn about these before you file. And creditors can ask the bankruptcy court to lift (remove) the stay. In certain circumstances, the court is likely to do so.
Below you'll find articles on the automatic stay, exceptions to the stay, how the stay affects particular creditors such as mortgage lenders and landlords, and when creditors can lift the stay.
How Bankruptcy Stops Your Creditors: The Automatic Stay
When you file for bankruptcy, something called the automatic stay immediately stops any lawsuit filed against you and most actions against your property by a creditor, collection agency, or government entity. Especially if you are at risk of being evicted, being foreclosed on, being found in contempt for failure to pay child support, or losing such basic resources as utility services, welfare, unemployment benefits, or your job (because of a raft of wage garnishments), the automatic stay may provide a powerful reason to file for bankruptcy.
Evictions and the Automatic Stay in Bankruptcy
You can stop a pending eviction action by filing for bankruptcy. Learn how an order called the automatic stay can stop the eviction before the landlord receives an eviction judgment.
Bankruptcy's Automatic Stay Stops Foreclosure
The automatic stay in bankruptcy temporarily stops a pending foreclosure.
Using Chapter 7 Bankruptcy to Prevent a Utility Shut-Off
Filing for bankruptcy will stop a utility from disconnecting service for 20 days, and longer if you can come up with adequate assurance of payment. Learn more.
Learn about programs and laws that can help you avoid utility disconnections.
Can My Car Be Repossessed After I File for Chapter 13?
If you are making adequate protection payments, the car lender cannot take your car before you plan is confirmed.
When a Creditor Tries to Lift (Remove) the Automatic Stay
The automatic stay stops most collection efforts during your bankruptcy. But the stay is not absolute – creditors can ask the bankruptcy court to remove the stay, called lifting the automatic stay.
How Bankruptcy Can Stop Wage Garnishments
Learn how filing for bankruptcy can help stop a wage garnishment.
What happens if a creditor tries to collect a debt during my bankruptcy?
If, after you file for bankruptcy , a creditor continues its collection actions against you, the creditor may be violating bankruptcy’s automatic stay.
Will Bankruptcy Stop the IRS From Collecting Tax Debts?
A bankruptcy case can be an effective tool in managing tax debts. It will stop the IRS from continuing collection actions like garnishments and prevent the IRS from placing tax liens. A bankruptcy can eliminate (discharge) some older taxes and give you a process for paying back what you can’t wipe out. Read on more for more on how bankruptcy can stop the IRS and give you an avenue to pay the taxes you owe.
Can the Lender Repossess My Car During Chapter 7 Bankruptcy?
If your car loan lender gets court permission, it can repossess your car during Chapter 7 bankruptcy. Find out how to avoid losing your car in Chapter 7 bankruptcy.
Losing the Automatic Stay for Repeat Bankruptcy Filings
If you file for bankruptcy more than once in a year, the automatic stay lasts only 30 days or in some cases doesn't kick in at all.