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 South Carolina, as in all states, the automatic stay is a fundamental provision of the federal Bankruptcy Code (11 U.S.C. § 362) that takes effect the moment a bankruptcy petition is filed. The automatic stay immediately halts most creditors from taking collection actions against the debtor or the debtor's property. This includes stopping lawsuits, wage garnishments, and even phone calls demanding payments. The stay is designed to provide a 'breathing spell' for the debtor, during which time the debtor's financial affairs can be sorted out. It is important to note that there are some exceptions to the automatic stay, such as certain tax proceedings, child support actions, and criminal proceedings. Creditors can also ask the bankruptcy court to lift the stay if they believe it's not serving its intended purpose or if they are not adequately protected. The specifics of how the automatic stay applies can be complex, and debtors in South Carolina facing bankruptcy should consult with an attorney to understand their rights and obligations under the law.