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 Missouri, as in all states, the automatic stay is a fundamental provision of the federal Bankruptcy Code (11 U.S.C. § 362) that takes effect immediately upon the filing of a bankruptcy petition. The automatic stay halts most collection efforts, foreclosures, and repossessions of property by creditors, collection agencies, or government entities. The stay is intended to provide a 'breathing spell' for the debtor, during which time the debtor's assets are protected while a plan is developed to pay off debts or discharge them in bankruptcy. The automatic stay applies to both individuals and businesses and is effective until the bankruptcy case is resolved, the stay is lifted by the court, or the subject property is no longer part of the bankruptcy estate. Creditors may seek relief from the stay from the bankruptcy court if they can show cause, such as lack of adequate protection for the creditor's interest in the property or that the stay does not serve its intended purpose.