Adam Schachter's blog

The Automatic Stay - Bankruptcy Protection

What is an Automatic Stay

As soon as a bankruptcy is filed, with a couple of narrow exceptions, something called the “automatic stay” goes into effect. The automatic stay is found in the bankruptcy code at 11 U.S.C. § 362(a) and it stops most collection efforts. In our experience as an experienced bankruptcy attorney in Texas, once a bankruptcy is filed, the automatic stay prevents repossessions and foreclosures and stops lawsuits.