Bankruyptcy Lawyer, Columbia SC

What is the automatic stay?

The filing of a bankruptcy petition automatically stays (stops) most actions, such as collections, foreclosures and repossessions, against the debtor or the debtor’s property. It is called “automatic” because the stay typically begins automatically at the time the bankruptcy case is filed with the Clerk’s Office. There are certain exceptions to the automatic stay, such as if you have filed bankruptcy in the past and your case was dismissed (depending on the number of cases and the time period since dismissal of the previous case). Once the stay is in place, creditors are prohibited from taking certain actions against a debtor without permission from the bankruptcy court. Some creditors, particularly those involved with repossessions or foreclosures, may immediately file a motion to lift the automatic stay with the court to seek the ability to go forward with foreclosure or repossession actions.