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How Does Bankruptcy Automatic Stay Work?  If you live in New York, and you are being harassed by creditors or collection agencies, the automatic stay part of the bankruptcy process may give you room to breathe. What is an Automatic Stay? Under Section 362 of the  United States Bankruptcy Code  https://www.usbankruptcycode.org/ , as soon as you declare bankruptcy, and your paperwork is submitted to the court, an automatic stay kicks in. This prevents most people and companies from trying collect the money you owe them. Most debtors and bill collectors must immediately stop trying to call, write, or email you. Let’s look at what an automatic stay does and doesn’t cover. An Automatic Stay Can… Slow down evictions – an automatic stay can temporarily stop an eviction, giving you additional time to try and pay down your back rent or to find a new place to live. However, this doesn’t cover all eviction proceedings, which we’ll cover in the next section. Avo...