When a debtor files for bankruptcy, he gets protected by an automatic stay in bankruptcy.

An automatic stay provides a debtor or debtors who have filed for bankruptcy legal protection from the creditors who want their owed money back.

Till the time the bankruptcy case is discharged or becomes official by the completion of the court procedure, the automatic stay continues and protects the debtor.

In case the bankruptcy case does not get discharged but gets dismissed due to any reason, the automatic stay gets lifted at that time.

Typically, the automatic stay in bankruptcy comes into effect at the time of filing for bankruptcy and continues till the time the case is discharged.

However, this rule has certain exceptions. If the debtor has filed for bankruptcy at any time in the year before the current year of filing and got that case dismissed before completion, then the duration of the automatic stay is only for 30 days.

With this rule, people who want to protect themselves by automatic stay but have no intention of filing for bankruptcy can be prevented from doing so.

Sometimes a case may take a longer time to get completed while there is an urgent need for repayment of a debt.

The creditor, in such a case, can request the judge to lift the automatic stay. This lifting is done only for that one creditor and gives him the legal right to get back his owed debts.

However, this can be done only by a judge’s order after furnishing a good reason for it.

If you have debts more than you can make repayments of, then the bankruptcy process provides you protection.

However, there are many legal complexities involved in these proceedings, and consulting with a lawyer can be beneficial for you.