What is the "automatic stay?"

When you file a bankruptcy petition, your creditors are automatically barred from taking any action to collect the debts owed them or seizing your property. The relevant statute, 11 U.S.C. sec. 362, does provide some exceptions. For example, a bankruptcy petition does not stay the commencement or continuation of a criminal action (unless brought to collect a debt), an action to collect alimony, maintenance or support from certain assets or income, or an action to enforce a government's police or regulatory power.

In some states, an action taken in violation of the automatic stay is void. In other states it is voidable and the debtor must obtain a court order undoing the action.