Automatic Stay

• When you file for personal bankruptcy, the court will grant you an automatic stay to temporarily protect you from foreclosure proceedings and collection attempts. You will receive the stay for both chapter 13 and chapter 7, though the rules for automatic stay vary for each type of bankruptcy. If you file chapter 7, the automatic stay is only effective until the judge discharges your debt or lifts the stay at the request of your lender. Chapter 13, on the other hand, implements the stay for the duration of your repayment plan, which can last up to five years.
  
  

Exceptions

• You may not receive an automatic stay in some circumstances at the discretion of the judge presiding over your case. For example, if you previously filed at least two bankruptcies that were dismissed in the year leading up to your current filing, you will not receive automatic stay protection. Similarly, if you filed only one bankruptcy in the 12 months leading up to your current bankruptcy, you will receive a shortened stay of 30 days. The judge may grant you different terms if he sees fit.
  
  

Protection

• Automatic stay keeps your creditors at bay while you attempt to reorganize your debts and overcome your current financial situation. During this time, your lenders cannot foreclose on you, sue you, repossess your possessions, make collection attempts or garnish your wages. However, the stay will not protect you from a tax audit request or attempts to collect court-ordered payments, such as child-support and alimony.
  
  

Complaints

• If your creditors continue to violate the terms of your stay during your bankruptcy case, they may be subject to severe penalties. Keep records of any violations, including collection attempts. Notify your creditor of your bankruptcy filing by phone, email and in writing, and keep all records of notification. If attempts continue, file an "adversary action" inside your bankruptcy case. The adversary action acts as a lawsuit against the lender, at which time the court will hold a hearing and determine if the lender owes you any damages for violating the automatic stay.