The Automatic Stay in St. Louis Bankruptcy

The automatic stay is one of the most powerful protections in bankruptcy. It takes effect the instant your petition is filed.

What the Automatic Stay Stops

  • Collection calls and letters -- Creditors must stop all contact
  • Lawsuits -- Pending collection suits are paused
  • Wage garnishment -- Garnishment orders are halted
  • Foreclosure -- Mortgage foreclosure proceedings are stopped
  • Repossession -- Creditors cannot seize your car or property
  • Utility shutoffs -- Utilities cannot disconnect for 20 days
  • Eviction -- May pause eviction in some circumstances

When Does It Take Effect?

The automatic stay takes effect immediately when your bankruptcy petition is filed with the E.D. Mo. court at 111 S 10th St, St. Louis, MO 63102. No court order is needed -- it is automatic under 11 U.S.C. section 362(a).

Exceptions and Limitations

  • Criminal proceedings -- Not stayed
  • Tax audits -- IRS can continue audits (but not collect)
  • Child support/alimony -- Collection can continue
  • Repeat filings -- If you filed and had a case dismissed in the past year, the stay may last only 30 days or not apply at all

What Is Relief from Stay?

A creditor can ask the court for permission to proceed despite the stay. This is called "relief from stay" and requires a court hearing. Common reasons include:

  • You are not making mortgage or car payments
  • The creditor's collateral is losing value
  • The creditor has "cause" (you filed in bad faith)

Frequently Asked Questions

Does the stay stop wage garnishment?

Yes. The automatic stay stops wage garnishment immediately upon filing. Your employer will be notified. 25% of disposable earnings or amount exceeding 30x federal minimum wage

Can a creditor violate the stay?

Yes, and violations can result in contempt of court, damages, and attorney fees. If a creditor contacts you after filing, notify your attorney immediately.

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