Protection from creditor actions
The automatic stay in Bankruptcy affords protection from creditor collection
activities, garnishments, levies and foreclosures. It is statutorily codified
in 11 U.S.C. § 362. The automatic stay applies, subject to certain
exceptions, the second a bankruptcy case is filed.
The advantage to the automatic stay is that it stops a creditor from suing
you, foreclosing on your property, and removing funds from your bank account
to satisfy a Judgment.
There are numerous exceptions to the automatic stay and motions which can
be filed in court by a creditor to either limit, condition, or remove
the automatic stay altogether.