OBTAINING RELIEF FROM AUTOMATIC STAY
Almost always, an automatic stay is imposed when a debtor files for bankruptcy – meaning all collection efforts must immediately stop. In many instances, a creditor will need to obtain relief from the automatic stay pursuant to 11 U.S.C. § 362, through the bankruptcy court, in order to take action against the debtor or property of the debtor’s bankruptcy estate. There can be grave consequences against a creditor who continues pursuit of a debtor after the debtor files for bankruptcy, including sanction by the bankruptcy court.