Automatic stay is a powerful protection device for consumers in the realm of bankruptcy. A bankruptcy automatic stay can be defined as temporarily evaluation that has been automatically placed once the bankruptcy petition has been filed by a company or individual.

According to U.S. Bankruptcy Code section 362, the stay will protect you from almost all creditors and their actions against you from the moment the case is filed. Automatic Stay does not last forever and it generally ends when at least one of the following three actions occur:

1. your discharge is denied or granted
2. at time of deep dismissal of case
3. when the case is getting closed.

If the discharge of bankruptcy is granted and the case gets closed then the automatic stay turns permanent and takes the form of Discharge Injunction. In case the discharge has been denied or the case gets dismissed, the creditors may take action and act against you. Automatic and may also end early in you had find some other things to them past few years. This particular condition happens when you have filed at least one out of the chapters 7, 11 or 13 and the case got dismissed in the past year. In case you had filed more than one of the chapters 7, 11 or 13 and case got dismissed in the past year, then you may not get the automatic stay protection except the court instructs otherwise.

Your creditors may also request the Bankruptcy court to lift the stay and enable them to go ahead with their course of action against your property or you. This is because specific requirements for governing their ability is also present but the court will definitely require some kind of certain proof to lift the stay. Mortgage companies may also file a motion to get relief from stay safe you fall behind your payments.

Even if the court lifts the automatic stay, it does not mean that your bankruptcy suite has failed. You still have all the possibilities of getting discharged off your debts. The Discharge Injunction will help in effectively imposing the prohibition of taking any action against you.



Brian Joneta also writes about Bankruptcy and Credit issues including Declaring Personal Bankruptcy and Cost of Declaring Bankruptcy

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