The automatic stay provides a period of time in which all judgments, collection activities, foreclosures, and repossessions of property are suspended and may not be pursued by the creditors on any debt or claim that arose before the filing of the bankruptcy petition. A stay of creditor actions against the debtor automatically goes into effect when the bankruptcy petition is filed. The stay provides a breathing spell for the debtor, during which negotiations can take place to try to resolve the difficulties in the debtor's financial situation.

In Illinois, as in all states, the automatic stay is a provision under federal bankruptcy law that immediately stops most creditors from pursuing debt collection against individuals or entities that have filed for bankruptcy. This legal protection is triggered the moment a bankruptcy petition is filed with the court. The automatic stay applies to various actions, including but not limited to judgments, collection activities, foreclosures, and repossessions. It is intended to provide a 'breathing spell' for the debtor, allowing them time to reorganize their finances without the pressure of creditor actions. During this period, creditors are generally prohibited from initiating or continuing lawsuits, wage garnishments, or even making telephone calls demanding payments. The stay remains in effect until the bankruptcy case is resolved, the stay is lifted by the court, or the specific debt in question is discharged. However, there are certain exceptions to the automatic stay, such as for child support actions or criminal proceedings, where creditor actions may continue.