The Automatic Stay Stops All Collections

The automatic stay is a fundamental protection afforded to debtors upon filing for bankruptcy. It serves as a powerful shield, providing the debtor with immediate relief and several key benefits. Here's how the automatic stay protects a debtor in bankruptcy: 1. Halts creditor actions: The automatic stay immediately stops most collection actions and legal proceedings against the debtor or the debtor's property. This includes actions such as lawsuits, foreclosures, repossessions, garnishments, and creditor harassment. The stay ensures that creditors cannot continue their collection efforts or take any further legal action without permission from the bankruptcy court. 2. Provides breathing room: By imposing...