What is an automatic stay and why do I need one?
The automatic stay is a very powerful tool resulting from the filing of bankruptcy. When you file for bankruptcy within the allowable statutory guidelines, an automatic stay extends to all of your creditors. What this means is that most types of actions against you will be stopped by the filing of your bankruptcy. If your home is in foreclosure then the filing of the bankruptcy will stop it for a period of time. If you have a creditor suing you, the bankruptcy will also stop those proceedings. The automatic stay generally prohibits your creditors from taking any collection actions against you.
