What Is an Automatic Stay?

An automatic stay is the legal term used for when collection activity is ordered to stop by the court. This occurs when you first file your bankruptcy case. The court will order that all collection calls, foreclosures, repossessions, and other collection activity ceases while the bankruptcy case is ongoing. This means whether you file a Chapter 7 or Chapter 13 bankruptcy, the collection calls and harassment will stop immediately after filing. However, this does not mean that you are no longer responsible for those debts.