While the subject of the automatic stay is discussed here on this page AUTOMATIC STAY , and in this video. It is basically all about protecting you and preserving the status quo.
One is often said to seek “bankruptcy protection” when one files bankruptcy. This is appropriate, and exactly what the automatic stay does. It protects you immediately from most creditor actions. Sometimes when you need protection you need it right now, not at the end of the process. That is why the automatic stay goes into effect immediately, even if you’ve only filed an emergency petition with only a list of creditors and a few sparse documents.
It is not automatic if one has filed multiple bankruptcies within a year of each other. The new laws under BAPCPA make the 2nd filing stay last only 30 days if filed within a year and there is no stay at all on a third attempt within a year. This prevents abuse of the bankruptcy system from serial filers, although if there is a legitimate reason for filing serially then the bankruptcy judge can reimpose the stay.
The bankruptcy system would not work without the automatic stay. It is a tool that a good bankruptcy attorney can use strategically on your behalf.
