Debt

Automatic Stay The court order that instantly freezes most collection the moment you file bankruptcy

Jordan Park By Jordan Park, Senior Debt Relief Editor · Updated 2026-06-09
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The automatic stay is a court order under 11 U.S.C. §362 that takes effect the instant you file for bankruptcy, immediately halting most collection activity against you. The moment your case is filed, creditors must stop lawsuits, wage garnishments, foreclosures, and collection calls. You don't have to ask a judge for it separately—it applies automatically by operation of law. This breathing room is one of the biggest reasons people file bankruptcy in the first place, because it stops the pressure while your case proceeds. The stay isn't absolute, though. Certain exceptions apply, such as some domestic-support obligations like child support, which can continue despite the filing. Creditors can also ask the court to lift the stay in specific situations. How long it lasts and how it affects your particular debts varies by case and by the type of bankruptcy you file.
Also Known As
Section 362 Stay Bankruptcy Stay Stay of Collection 11 U.S.C. §362 Stay
Used in Context
  1. The day after she filed Chapter 7, her wage garnishment stopped because the automatic stay took effect under 11 U.S.C. §362.
  2. A reader who connected with an attorney through Dreamy Leads learned the automatic stay would pause his pending foreclosure sale the moment he filed.
  3. His creditors had to halt their harassing collection calls once the automatic stay kicked in, even though his case had just been filed that morning.
Related Terms
Debt Chapter 7 Bankruptcy A liquidation bankruptcy that can wipe out most unsecured debts in a few months Debt Chapter 13 Bankruptcy A reorganization bankruptcy that lets you keep your assets and repay debts through a court-approved plan Debt Wage Garnishment A court-authorized process that directs your employer to withhold pay for a creditor judgment Debt FDCPA (Fair Debt Collection Practices Act) Federal law that limits how third-party debt collectors can contact and treat you
Frequently Asked Questions

When does the automatic stay start?

It takes effect the exact moment your bankruptcy is filed under 11 U.S.C. §362. You don't have to request it from the judge—it applies automatically. Once filed, most creditors must immediately stop lawsuits, garnishments, foreclosures, and collection calls against you.

Does the automatic stay stop all debt collection?

No. It halts most collection, including lawsuits, garnishments, foreclosures, and collection calls. But some exceptions apply, such as certain domestic-support obligations like child support, which can continue. Creditors can also ask the court to lift the stay in specific circumstances.

Can a creditor still take my house after I file?

Filing triggers the automatic stay under §362, which immediately halts most foreclosures. However, the stay isn't permanent, and a mortgage lender can ask the court to lift it. Outcomes vary by your case type and circumstances, so consult a bankruptcy attorney.

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