A creditor whose claim originated prior to the bankruptcy filing must cease all collection efforts. The stay halts all collection actions, including credit card debts, lawsuits, foreclosure proceedings, attempts at repossession, judgments, and wage garnishments. The automatic stay temporarily halts all phone communications and mail from the above-listed debt collectors.
In the majority of cases, the protection is automatic, no hearing is conducted, and no judge's signature is required. It is merely triggered by the bankruptcy filing and the assignment of a case number. All creditors are immediately obligated by the stay, and they will go to great lengths to avoid violating it, as intentional violations can result in severe penalties for the creditor. Unless the creditor files a motion for relief from the stay, the stay usually remains in effect until the conclusion, dismissal, or discharge of the bankruptcy.
The stay is temporary and automatically expires upon the occurrence of specified events, such as a hearing for relief or the dismissal or discharge of the bankruptcy case. If a secured creditor wishes to proceed with collection efforts before the conclusion of your bankruptcy, they must file a motion with the bankruptcy court. A motion for relief from the automatic stay will be submitted by the creditor. This motion explains why they believe they should be permitted to proceed with collection actions against you. Typically, the motion is based on the creditors' argument that their collateral is losing value and that they will incur additional losses if they do not proceed. Most likely, a secured creditor will seek relief from the stay if the property of significant value is subject to an unacceptable risk, is rapidly depreciating in value, or if the debtor is substantially behind on mortgage payments.
One exception to the automatic stay is when the same debtor has filed multiple cases. A case in point would be someone filing a lawsuit, having it dismissed, and then promptly filing another lawsuit. The stay remains automatic for the second filing, but it is no longer automatic for the third filing. In this instance, a motion would be required to obtain stay protection from the bankruptcy judge.""
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