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 Maine, 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 once they have filed for bankruptcy. This stay is automatic and does not require a court order to go into effect. It halts actions such as foreclosures, repossessions, evictions, garnishments, attachments, utility shut-offs, and debt collection lawsuits. The automatic stay is intended to provide a 'breathing spell' for the debtor, allowing them time to reorganize their finances without the pressure of immediate collection efforts. Creditors are prohibited from taking any action to collect debts without first obtaining permission from the bankruptcy court. Violations of the automatic stay can result in court sanctions against the creditors. The stay remains in effect until the bankruptcy case is closed, dismissed, or until the debtor receives a discharge, although there are exceptions and certain creditors may request the court to lift the stay regarding their specific debt.