part 6:
Stays: But I Thought I Had to GO!
In the legal world of bankruptcy, a “stay” refers to the automatic stay provision outlined in 11 U.S. Code § 362. An automatic stay is a federal injunction that stops actions by creditors to collect debts from a debtor who has declared bankruptcy.
This automatic stay takes effect immediately upon filing for bankruptcy. It ceases all collection actions, lawsuits, wage garnishments, and yes, even foreclosures. Your creditors cannot make direct contact with you or make a claim on any property you own.
It’s crucial to understand that this stay is not permanent, and certain actions can shorten its duration or cause it to be lifted altogether. To fully comprehend the scope of an automatic stay, it’s helpful to visit this link: https://www.law.cornell.edu/uscode/text/11/362.