Bankruptcy Terms Explained in Plain English
Automatic Stay
Plain-English Definition
A legal pause that generally stops many collection actions when a bankruptcy case is filed.
Why it matters
The stay may pause collection calls, lawsuits, garnishments, foreclosure, and repossession. It is not a discharge of the debt. Exceptions and prior filings can change the protection, and a creditor may ask the court for permission to proceed.
A simple example
A person facing a wage garnishment asks an attorney whether filing can pause the collection while the underlying debt is addressed.
Illustrative only; not a prediction of any case outcome.
See how this applies to you
Source reference: U.S. Courts Bankruptcy Basics Glossary. This page provides a plain-English explanation, not a quotation of the glossary.
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