automatic stay motion

An automatic stay motion is a legal request made during bankruptcy proceedings that halts all collection activities and lawsuits against the debtor. Once a person or business files for bankruptcy, this stay goes into effect immediately, protecting them from creditors seeking payment. The purpose is to give the debtor breathing room to reorganize finances without the pressure of ongoing legal actions. Creditors can challenge the stay, but generally, it acts as a shield to stabilize the debtor’s situation while resolving their debts through the bankruptcy process.