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What is an automatic stay?

An automatic stay is a legal provision related to bankruptcy cases that temporarily prevents lenders (creditors) from harassing and pursuing borrowers (debtors). Under section 362 of the United States Bank, the stay beings the moment the bankruptcy petition is filed and typically last around 30 days. For most Chapter 7 bankruptcies, and automatic stay goes into effect immediately when Chapter 7 is filed.

Once the automatic stay is filed, the debtor must perform a variety of steps:

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