Please note that the Clerk's Office CANNOT give legal advice, assist with disputes, or act on your behalf. Additionally, all requests for relief must be in writing and filed with the court. Individuals are not permitted to contact or visit the judge.

What happens to my property when I file bankruptcy? What is the Automatic Stay?

An injunction that usually comes into force automatically when a bankruptcy case is filed.  This stops actions such as lawsuits, foreclosures, garnishments, and most collection activities against the debtor and property of the bankruptcy estate.

When a bankruptcy case is filed, the automatic stay usually takes effect under 11 U.S.C. § 362(a). It stops most collection actions, such as lawsuits, wage garnishments, and payment demands. However, the stay has exceptions and other rules that may affect each person differently. See 11 U.S.C. § 362 for the full details.

Filing bankruptcy also creates a bankruptcy estate, which generally includes the debtor’s property and legal interests owned when the case is filed. The automatic stay protects estate property while it remains part of the estate under 11 U.S.C. § 362(c)(1). Property may leave the estate if it is sold, abandoned, or otherwise transferred back to the debtor.