The Automatic Stay

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At the filing of a bankruptcy petition, a temporary injunction known as an automatic stay goes into effect. This stay can be compared to an invisible force field that covers the debtor and shields him from attempts by creditors to contact him or to collect for pre-filing debts. Common stayed acts are lawsuits, repossessions, bank levies, wage garnishments, foreclosures, evictions, phone calls, collection letters, demands for payment, and other acts to force payment by a debtor. When the debtor receives a discharge, the temporary injunction (automatic stay) is replaced by a permanent injunction that prohibits any action designed to collect against the debtor personally on a discharged debt. A violation of the discharge injunction can result in sanctions.

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