What is an Automatic Stay?
The automatic stay prohibits most actions to collect money or property from the debtor. The automatic stay goes into effect at the start of a bankruptcy case and continues as to the debtors property until the property is either no longer property of the estate; or as to the debtor, it continues until the case is closed or dismissed and the debtor is either granted or denied a discharge. Obtaining the assistance of an attorney is strongly recommended before you continue efforts to collect money owed or property from the debtor because if you violate the stay, you may be liable to pay damages.
When you file for Chapter 7 Bankruptcy, the Court will issue an “automatic stay”. The automatic stay temporarily stops your creditors from trying to collect what you owe them. While the stay is in effect, creditors cannot legally garnish your wages, seize the contents of your bank account, or go after your property.
