An automatic stay protects the debtor (you) from creditors’ collection activities and halts all judicial and administrative collection proceedings (including proceedings pending before the U.S. Tax Court).
The stay is effective immediately after the petition is filed. The clerk will send an Order for Relief to all creditors, which activates the automatic stay, stopping most collection activities and judicial proceedings. If a creditor continues its collection activities after being notified of the bankruptcy filing, the debtor (you) may be entitled to monetary damages, including costs and attorneys fees. The automatic stay remains in effect until (1) the case is closed, (2) the case is dismissed, or (3) a discharge is granted or denied.
However, not all activities can be stayed. Proceedings and obligations that are not stayed by filing the petition are:
If an individual debtor in a Chapter 7, 11, or 13 case had a bankruptcy case dismissed within one year of filing a new petition, the automatic stay will terminate 30 days after filing unless the court finds after hearing upon motion of a party in interest that the refiling was in good faith. The case is presumed not to be in good faith as to any creditor if:
If two or more bankruptcy cases pending in the year preceding the current filing were dismissed (other than a dismissal for an abuse of the bankruptcy code), no stay goes into effect and the court is required to enter an order confirming that the stay is not effective on request of a party in interest. However, the court may impose a stay upon request of a party in interest upon motion to establish the good faith of the current filing. The new stay is subject to all of the following requirements:
If a small business debtor (as defined by the code) had a small business case pending within the preceding two years, the stay does not apply unless the court imposes the stay. Certain exceptions apply.