What is the Automatic Stay?

The Automatic Stay is a legal protection that stops most collections efforts by creditors against debtors in Virginia. It is an automatic injunction that is triggered when a Chapter 7 Bankruptcy petition is filed. The stay can stop creditor action which includes foreclosure, repossession, garnishment of wages, and lawsuits. It also stops creditors from calling, writing or otherwise trying to collect debts. This gives debtors time to work out a repayment plan or give the court time to decide whether to discharge or reaffirm a debt. The Automatic Stay can also help debtors stay in their home. It stops foreclosure proceedings, which can give debtors time to catch up on payments while they work out a repayment plan. It can also help debtors who are facing repossession of their vehicles. In this case, the stay can give the debtor time to catch up on the payments to ultimately keep their car. Under Chapter 7 Bankruptcy Law in Virginia, the Automatic Stay is an essential protection for debtors, which gives them time to figure out how to move forward with their financial obligations.

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What is the Automatic Stay?

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