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 Maryland, 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 pause is triggered the moment a bankruptcy petition is filed with the court. The automatic stay is designed to provide a 'breathing spell' for the debtor, temporarily halting all judgments, collection activities, foreclosures, and repossessions on pre-petition debts. It allows the debtor time to reorganize their finances or negotiate with creditors under the protection of the bankruptcy court. Creditors are prohibited from taking any action to collect debts without first obtaining permission from the bankruptcy court. This stay is applicable in Maryland through the federal Bankruptcy Code, and the specific procedures and effects are governed by the relevant bankruptcy chapter under which the petition is filed (e.g., Chapter 7, 11, or 13).