The Immediacy of
the Bankruptcy Stay

Protection Begins Before Creditors Can React

The filing of any bankruptcy case, creates an automatic bankruptcy stay that immediately protects the debtor and stops any collection efforts against the debtor. The speed of the bankruptcy is instantaneous and any civil action in pursuit of debt - a foreclosure sale, an eviction, a bank restraint, a wage garnishment, a collection action and/or a legal proceeding - is immediately stayed. Unlike a stay in the New York State court system, which is “discretionary” and needs to be granted by the state court Judge, pursuant to an Order to Show Cause emergency application, the bankruptcy stay is “automatic”, and is triggered by the bankruptcy petition filing and requires no separate court order.