The bankruptcy automatic stay, explained: what it stops and what it does not

When a person files a bankruptcy petition, federal law puts an “automatic stay” on most collection actions against the person and the property of the bankruptcy estate. The U.S. Courts say the stay arises by operation of law and requires no judicial action.^[1] It has exceptions, it does not last forever, and a creditor can ask the court to lift it.^[2] This page explains the rule in 11 U.S.C. § 362. It does not tell you whether the stay applies in your case.

The short version

What it does: the U.S. Courts say that as long as the stay is in effect, creditors generally may not start or continue lawsuits, wage garnishments or even phone calls demanding payment.^[1]
When it starts: when the petition is filed. It needs no separate court order.^[1]^[2]
What it does not stop: a list of actions in section 362(b), such as criminal cases and several kinds of family-support enforcement.^[2]
How long: generally until the case is closed or dismissed, or in an individual Chapter 7 case until a discharge is granted or denied. Individual debtors who filed before face shorter limits.^[2]
If a creditor ignores it: an individual injured by a willful violation recovers actual damages, including costs and attorney’s fees, and in appropriate circumstances punitive damages.^[2]

What the stay stops

Section 362(a) says a bankruptcy petition operates as a stay, applicable to all entities, of:^[2]

starting or continuing a lawsuit, or an administrative or other proceeding, against the debtor that was or could have been started before the case, or to recover a claim that arose before the case;^[2]
enforcing, against the debtor or property of the estate, a judgment obtained before the case;^[2]
any act to obtain possession of, or exercise control over, property of the estate;^[2]
any act to create, perfect or enforce a lien against property of the estate, or against the debtor’s property for a claim that arose before the case;^[2]
any act to collect, assess or recover a claim that arose before the case; and^[2]
setting off a debt owed to the debtor that arose before the case against a claim against the debtor.^[2]

The U.S. Courts add that the bankruptcy clerk gives notice of the case to all creditors whose names and addresses the debtor provides.^[1]

What the stay does not stop

Section 362(b) lists actions the filing does not stay. The U.S. Courts note that the stay does not reach the listed actions and may be effective only for a short time in some situations.^[1] Examples from the list:^[2]

Category	What the statute says is not stayed
Criminal cases	Starting or continuing a criminal action or proceeding against the debtor.^[2]
Family and support matters	Establishing paternity; establishing or modifying a domestic support order; child custody or visitation; divorce (except to the extent it divides property of the estate); domestic violence proceedings; collecting a domestic support obligation from property that is not property of the estate; withholding income for support under a court or administrative order or a statute; withholding, suspending or restricting a driver’s, professional or recreational license for support; reporting overdue support to a consumer reporting agency; and intercepting a tax refund for support.^[2]
Taxes	A government tax audit; a notice of tax deficiency; a demand for tax returns; and making an assessment and issuing a notice and demand for payment.^[2]
Certain evictions	Continuing an eviction or similar proceeding for residential property where the landlord obtained a judgment for possession before the filing, subject to the cure and deposit conditions in subsection (l); and certain evictions based on endangering the property or illegal drug use, if the landlord files a certification.^[2]
Certain government actions	An action by a governmental unit to enforce its police and regulatory power, including enforcing a judgment other than a money judgment (paragraph (4)); and a HUD action to foreclose a mortgage it insures or formerly insured on property of five or more living units (paragraph (8)).^[2]

The list is longer than this table. It does not say how these exceptions apply to your facts; that is a question for the court or a lawyer.

How long it lasts

Under section 362(c), the stay of an act against property of the estate continues until the property is no longer property of the estate. The stay of any other act continues until the earliest of the case being closed, the case being dismissed, or, in an individual’s Chapter 7 case and in cases under Chapters 9, 11, 12 and 13, the time a discharge is granted or denied.^[2]

Individual debtors who filed before

An earlier case was pending in the last year and was dismissed: if an individual files a Chapter 7, 11 or 13 case and an earlier case of the debtor was pending within the preceding 1-year period but was dismissed (other than a case refiled under a chapter other than Chapter 7 after a dismissal under section 707(b)), the stay as to a debt, property securing a debt, or a lease ends with respect to the debtor on the 30th day after the later case is filed. On a motion and after a hearing completed before those 30 days expire, the court may extend the stay, only if the party in interest shows the later case was filed in good faith as to the creditors to be stayed. The statute lists situations in which a later case is presumed not to be in good faith, a presumption that can be rebutted by clear and convincing evidence.^[2]
Two or more earlier cases were pending in the last year and were dismissed: with the same exception, the stay does not go into effect when the later case is filed. On request, the court promptly enters an order confirming that no stay is in effect, and within 30 days a party in interest may ask the court to order the stay to take effect, which it may do only if the later case was filed in good faith as to the creditors to be stayed.^[2]

Personal property securing a consumer debt

In an individual’s case, section 362(h) says the stay ends as to personal property that secures a claim, or is subject to an unexpired lease, if the debtor fails within the time set by section 521(a)(2) to file a required statement of intention, or to take timely the action the statement specifies. That property then stops being property of the estate. There are exceptions, including where the statement says the debtor will reaffirm on the original contract terms and the creditor refuses, and where the court finds on the trustee’s motion that the property is of consequential value or benefit to the estate.^[2]

When a creditor can ask the court to lift it

Under section 362(d), on request of a party in interest and after notice and a hearing, the court shall grant relief from the stay, such as by terminating, annulling, modifying or conditioning it:^[2]

for cause, including lack of adequate protection of an interest in property; or^[2]
as to an act against property, if the debtor has no equity in the property and it is not necessary to an effective reorganization.^[2]

The subsection has further grounds for single-asset real estate and for filings that were part of a scheme to delay, hinder or defraud creditors involving real property.^[2] Under section 362(e), 30 days after a request for relief from the stay of an act against property of the estate, the stay ends as to the party that asked, unless the court, after notice and a hearing, orders it continued pending a final hearing.^[2]

If a creditor violates the stay

Section 362(k)(1) says an individual injured by any willful violation of the stay recovers actual damages, including costs and attorney’s fees, and in appropriate circumstances may recover punitive damages.^[2] What counts as willful, and the amount, is for the court to decide. Keep copies of any notices or calls and tell your bankruptcy attorney or the case trustee.

The stay is temporary; the discharge is the lasting step

The U.S. Courts say a discharge releases individual debtors from personal liability for most debts and prevents creditors owed those debts from taking collection actions. A creditor may no longer start or continue any legal or other action against the debtor to collect a discharged debt.^[1] Some debts are not discharged; see debts a Chapter 7 discharge cannot erase.

What this page does not cover

It does not cover the other effects of filing, how to file, or how the stay interacts with a specific lawsuit, repossession, foreclosure or garnishment. Bankruptcy has serious consequences and strict rules. This is general information, not legal advice. Our Standard checks companies; it does not review any court process.

Your next step

If you are being sued or garnished and are thinking about bankruptcy, talk to a bankruptcy attorney before you file; see free legal help for debt problems. For how the two main consumer chapters differ, see Chapter 7 vs. Chapter 13. For what a lawsuit looks like, see sued for a debt. For secured debts after bankruptcy, see reaffirmation agreements. To check a company that offers bankruptcy or debt help, use the Register and our guide to checking a company yourself.

When we will update this page

We revisit it when section 362 changes. Sources last read 6 October 2026.

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