The Automatic Stay — Immediate Protection the Moment You File for Bankruptcy
One of the most powerful and reassuring features of bankruptcy law is something called the Automatic Stay. If you’ve been losing sleep over relentless collection calls, lawsuits, garnishments, or foreclosure notices, the Automatic Stay is the legal shield that stops it all immediately.
At Larson & Zirzow, our Las Vegas bankruptcy lawyers make sure our clients fully understand how the Automatic Stay works and use it strategically to protect your paycheck, your home, your car, and your peace of mind from the moment your bankruptcy case is filed.
What Is the Automatic Stay?
In plain terms, the Automatic Stay goes into effect the instant you file your bankruptcy petition. It requires creditors, collection agencies, and anyone trying to collect a debt to stop, or “stay,” their actions at once. The “automatic” part means you don’t have to go to court or request a special hearing; you are protected by law as soon as your case is filed.
Think of it as a legal force field that freezes most collection efforts in their tracks. For many people, this single protection brings immediate relief. No more calls, no more threats, no more fear that someone will swoop in and take your paycheck or your property while you’re trying to get back on your feet.
What Does the Automatic Stay Stop?
The Automatic Stay is broad and powerful. It halts nearly all collection and enforcement actions, including:
- Harassing calls, letters, emails and texts from creditors and debt collectors
- Wage garnishments that drain your paycheck
- Bank account levies that empty your accounts without warning
- Foreclosure proceedings that threaten your home
- Repossession of vehicles and other property
- Lawsuits and civil judgments to collect unpaid debts
- Eviction proceedings (in certain circumstances)
- Utility shut-offs because of unpaid bills
This protection gives you time to breathe, assess your situation, and move forward under the court’s supervision without the constant threat of losing what you’ve worked so hard for.
How Long Does the Automatic Stay Last?
In most cases, the Automatic Stay remains in place until your bankruptcy case ends with a discharge of debts or dismissal of the case, or until a court order is entered lifting the stay for a specific creditor. For Chapter 7 filers, this usually means about three to four months of full protection. For Chapter 13 filers, the protection can last until you complete your three to five year repayment plan.
Some creditors, such as secured lenders, may file a motion with the court to lift the stay if you’re not making payments on secured property like a house or car. If this happens, our firm is ready to step in and protect your interests, whether that means negotiating new terms, contesting the motion, or finding another solution.
Are There Limits to the Automatic Stay?
The Automatic Stay is powerful but not absolute. For example, it does not stop:
- Criminal proceedings
- Certain family court matters, like child support collection
- IRS audits or some tax assessments (but it can stop tax collection actions like garnishment or levies for qualifying tax debts)
Also, if you’ve filed multiple bankruptcies in a short time, the length and strength of the Automatic Stay may be limited or might not go into effect when your case is filed. For example, if you filed a prior case in the past year that was dismissed, the Automatic Stay in your new case might only last 30 days unless a motion to continue the Automatic Stay is properly filed, heard, and granted by the court before the end of the 30-day period.
These nuances make it critical to have experienced bankruptcy counsel advising and representing you. Mistakes can have disastrous results, including loss of property to foreclosure. At Larson & Zirzow, we know how to handle repeat-filing situations, prepare motions to extend or impose the stay, and protect your rights when creditors try to exploit the rules.
What Happens If a Creditor Ignores the Automatic Stay?
Most creditors understand that violating the Automatic Stay is a serious offense, and they stop their actions once they learn you’ve filed. If a creditor calls you after you file, simply providing your case number and our contact information is usually all it takes to stop them.
However, if a creditor deliberately ignores the stay and continues to collect, harass, garnish, or repossess, they can face stiff penalties. The bankruptcy court can order them to pay damages, including your attorney’s fees for enforcing the stay, and can impose other sanctions in certain situations.
Larson & Zirzow takes creditor violations seriously. If someone tries to violate your rights, we act fast by contacting the creditor, filing motions, and taking the issue to court if necessary. You don’t have to face harassment alone or put up with overly aggressive bill collectors or creditor misconduct after you’ve filed for bankruptcy.
How the Automatic Stay Helps You Get Back on Track
By stopping collections immediately, the Automatic Stay gives you room to breathe and plan. While the Stay is in effect, you can:
- Catch up on past-due mortgage payments through a Chapter 13 plan
- Stop repossession of your car and set up affordable payments to keep it
- Halt wage garnishments and free up income to pay living expenses
- Pause utility shut-offs and keep essential services connected
- Negotiate with creditors from a position of strength instead of fear
For many families, the Automatic Stay is what makes bankruptcy truly work. It’s the difference between constantly reacting to a crisis and having a clear, court-supervised plan to fix the problem.
Why Larson & Zirzow in Las Vegas Bankruptcy Matters?
The Automatic Stay is powerful, but it’s only as strong as the people protecting it. At Larson & Zirzow, we don’t just file your petition and send you on your way. We stay by your side, enforcing your rights and taking swift action if a creditor crosses the line.
Because we’re a boutique firm focused exclusively on bankruptcy and business litigation, we know how to handle tough creditors, fight for our clients in court, and protect your shield from beginning to end. Our team has the depth of experience and expertise to handle the most complicated situations, including cases involving complex assets, multiple creditors, and potential stay challenges.
Get the Protection You Deserve
If you’re feeling trapped by constant collection threats, wage garnishments, or foreclosure, you don’t have to face it alone, and you don’t have to put up with it another day. The Automatic Stay can give you instant relief and a clear path forward.
Contact Larson & Zirzow today for a free 30-minute consultation over the phone. We’ll explain how bankruptcy works, how the Automatic Stay protects you, and how we’ll stand between you and your creditors from the moment you file.