What does the automatic stay stop when I file bankruptcy?

Filing a bankruptcy petition instantly stays almost all collection under 11 U.S.C. § 362 (collection calls, lawsuits, wage garnishments, bank levies, repossessions, and most foreclosure sales) in Chapter 7 and Chapter 13 alike. Exceptions include criminal prosecutions and support collection, and creditors who willfully violate the stay owe damages under section 362(k).

Almost all collection, instantly and without a court order. The moment a bankruptcy petition is filed, 11 U.S.C. § 362 stays collection calls and letters, lawsuits and wage garnishments, bank levies, repossessions, utility shutoffs, and most foreclosure sales, protection that applies in Chapter 7 and Chapter 13 alike. Creditors who willfully violate the stay are liable for actual damages, attorney fees, and in egregious cases punitive damages (section 362(k)). The shield has edges: criminal prosecutions, child and spousal support establishment and collection from non-estate property, and certain tax audits continue (section 362(b)). Secured creditors can move for relief from stay to proceed against collateral, commonly when there is no equity or payments lapse. Repeat filings shrink the protection: one dismissed case within the prior year limits the stay to 30 days unless extended; two eliminate it on filing absent a court order (section 362(c)(3)–(4)). For a debtor facing a garnishment or sale date, the stay is often the immediate reason the filing date matters.

Authority: 11 U.S.C. § 362