Filing for bankruptcy – any kind of bankruptcy whatsoever- immediately triggers an injunction against the continuance of any action by any creditor against the you or your property; this is called the automatic stay, and it is a critical element of your bankruptcy case. If you file for Chapter 13 bankruptcy, that injunction extends to anyone else who is obligated to repay your debts.
The automatic stay gives you protection from your creditors during the bankruptcy case. In order for a creditor to continue to take action against you, that creditor must obtain court approval first.
There are, however, limits on how long the automatic stay lasts. For example:
- If you had a prior bankruptcy case pending in the last year which was dismissed then the automatic stay lasts for only the first thirty (30) days after your case is filed unless you or your lawyer gets a court order extending the automatic stay;
- If you had two or more prior bankruptcy cases pending in the last year which was dismissed then the automatic stay does not take effect at all unless you or your lawyer gets a court order extending the automatic stay.