What is an automatic stay?

An automatic stay is a legal protection that stops creditors from taking certain actions to collect a debt. It is a type of debt relief that is available in Washington and other states. In Washington, an automatic stay is available to those who file for bankruptcy. When an individual files for bankruptcy protection, the automatic stay gives them a period of time during which creditors can’t take action against them. During this period, creditors can’t seek a judgment, garnish wages or repossess property. This gives the person an opportunity to reorganize their finances, or enter into an agreement with the creditors that is mutually beneficial. The automatic stay is a powerful tool for those filing for bankruptcy. It helps them reorganize their finances and prevents creditors from continuing to hound them while they are in bankruptcy. However, it is important to remember that the stay is not permanent, and creditors can take action against the debtor once the stay has been lifted. It is also important to remember that certain debts like child support, alimony, taxes, and student loans are not covered by the automatic stay and creditors can still pursue these debts.

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