Castle Law Office Blog | Missouri & Illinois Bankruptcy Legal Blog

Bankruptcy Terms To Know: Automatic Stay

One of the most stressful aspects of bankruptcy is the pressure you are under by your creditors. Fortunately, the moment that you file for bankruptcy, an automatic stay prevents almost all creditors from harassing you while you during your bankruptcy case. An automatic stay prevents creditors from:

· Making calls to your house or sending letters to you regarding your debt.

· Filing a lawsuit regarding your debt.

· Refusing to issue a transcript or release other information based on your debt.

· Repossessing assets from your house.

· Going forward with a home foreclosure.

· Disconnecting your utilities, such as your water, electricity, or phone.

· Wage garnishments.


An automatic stay does come with a few exception: it may not stop those seeking alimony or child support, and it will not stop any criminal proceedings that you are involved in.